However, the transformation of this general intention into specific objectives and policies has been, and remains, a complex matter that often involves options or dilemmas that are not always easy to resolve. To start with, the concept of financial stability is difficult to define precisely, nor do we have a sufficiently solid analytical framework equivalent to that used to conduct monetary policy. Moreover, responsibility for preserving stability is normally shared among different authorities, each with its own approach to the issue. As a result of the current global financial crisis, financial stability is very much at the center of debate, prompting an in-depth review of institutional arrangements, authorities’ responsibilities, policies and the instruments that can be used for this purpose. In developed countries, where the crisis had its origin, financial reforms are underway in a bid to overcome the weaknesses that were detected. Emerging economies, although they did not experience the same problems, must take advantage of the opportunity to review their own situation, draw lessons and advance in perfecting their financial systems. From this point of view, the exchange of opinions that is the purpose of this seminar may help in drawing up recommendations. 2. The Central Bank of Chile and financial stability  The concern of the Central Bank of Chile (BCCH) for financial stability is anchored in its legal responsibilities and the powers or instruments assigned to it.
For coordination with the SBIF, a mechanism similar to that which already exists requiring a prior report or authorization from the BCCH when the supervisor exercises its regulatory power, could be used. BIS Review 142/2010  7  8  BIS Review 142/2010