It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
FRANKFURT (Reuters) - Central banks might need more power to oversee banks if they are to play a larger role in maintaining financial stability in the post-crisis world, a Bank for International Settlements (BIS) report said on Sunday.
"The current global financial crisis could well have ... important implications for central banks, particularly with respect to their role in fostering financial stability," said the report, by the Central Bank Governance group.
"If central banks are to play a key role in dealing with systemic risk when applying a more macroprudential approach, they may also need to have closer oversight of systemically significant institutions."
The Obama administration announced proposals last week to expand regulation of derivatives, which have been blamed for contributing to the failures of Lehman Brothers and American International Group Inc., leading to the seizure of credit markets and causing more than $1.4 trillion in losses and writedowns by financial companies.
If changes are not made “we will be haunted by our failure for years to come,” Brooksley Born, the former U.S. official who lost the fight to regulate derivatives a decade ago, said yesterday as she accepted a Profiles in Courage award from the John F. Kennedy Library.