At some point in the past half century, a belief seems to have formed that a recession need be avoided at all costs — long
term financial system stability be damned.
It hasn't fundamentally changed the way think
about financial system stability, though we now have a deeper understanding of the nature of the risks and the potential channels of contagion.
Bank Indonesia said it must
maintain financial system stability and consumer protections and that digital currencies have no official administrator, therefore ownership is «highly risky and loaded with speculations».
«This means that virtual currencies are vulnerable to bubble risks, and susceptible to be used for money laundering and terrorism financing, therefore can potentially
impact financial system stability and cause financial harm to society,» the central bank's communications department said in its statement.
The overheating of the cryptocurrency market with speculative money and the wild price fluctuations have raised alarms and calls for tightening of regulations in many countries from the viewpoint
of financial system stability.
He stated that the theme «National Development in the Era of Distributed Technology & Digital Currency» offers a unique opportunity to reflect on the impact of financial technologies and digital currencies
on financial system stability and economic development.
The other problem I have with central bank policies is that they are prioritising juicing (or attempting to juice) the economy in the short term, through the so - called wealth effect of higher asset prices and borrowing, ahead of maintaining long
term financial system stability.
They also discuss the ways in which the funds» risk - management frameworks could contribute to
financial system stability and how they minimize potential vulnerabilities.
As a member of the Bank's Governing Council, she shares responsibility for decisions with respect to monetary policy and
financial system stability, and for setting the strategic direction of the Bank.
As a member of the Bank's Governing Council, he shares responsibility for decisions with respect to monetary policy and
financial system stability, and for setting the strategic direction of the Bank.
The Russian Central Bank doesn't what to legalize cryptocurrency exchange operations involving ruble as this may «open up new possibilities for unfair market participants and create substantial risks for
the financial system stability.»
Put another way, the legislation balances the trade - off between homeownership and
financial system stability.