Redesigning the central bank for financial stability responsibilities – Speech by Mr Jaime Caruana, General Manager of the Bank for International Settlements, on the occasion of the 135th Anniversary Conference of the Bulgarian National Bank, Sofia, 6 June 2014.

“Central banks are being redesigned to better deal with their financial stability responsibilities – in just five years, over 60 central banks’ laws have been changed. Since much of the responsibility for financial stability policy is shared, integrating financial stability considerations into monetary policy, and vice versa, presents tough institutional challenges. Independence of action against the build-up of financial imbalances is important. It is crucial to avoid a bias towards inaction.”