Enrique Marshall: Central banks’ contribution to financial stability – the experience of Chile Speech by Mr Enrique Marshall, Board Member of the Central Bank of Chile, at the Central Bank of Bolivia’s First Financial Workshop “Macroregulation and Financial Stability”, La Paz, 29 September 2010. *  *  *  I am indebted to Kevin Cowan and Jorge Cayazzo for their valuable comments on an earlier version of this presentation but the opinions expressed here are the exclusive responsibility of the author. 1. Introduction  Financial stability has been a concern for central banks since their very origins. The functions for which they were created – to regulate money and credit markets and to serve as lenders of last resort – have a direct bearing on the objective of financial stability and this relationship has been further reinforced by the fact that many central banks have also undertaken a role in regulating and supervising the banking system. Both the economic literature and historical experience provide sound grounds for this concern for stability, clearly demonstrating that the functioning of the real economy requires an efficient and stable financial system. The hardest lesson of history, however, is that financial crises have occurred time and again, with a very high cost in terms of both their fiscal impact and the associated losses of output. 1 Financial stability has, as a result, emerged as a paramount objective of public policy.
Chairperson, in conclusion, I wish to take note of the commendable step that Stanbic Bank Zambia Limited has taken to build its own offices here in Zambia after a long presence in the country. I am hopeful that this initiative will create a more expansive and customer-friendly environment for your customers. I congratulate you for this milestone. I thank you for your attention. 2  BIS Review 88/2009