Who is in Charge of Financial Stability, why, and what they can do
Although formal multi-agency financial stability committees (FSCs) have been created in 41 countries, just two have direct powers to set policies and only 11 can issue “comply or explain” directives, requiring an agency to respond with the directed action, or to explain why it did not. In this paper for the
Hutchins Center at Brookings, Rochelle Edge and Nellie Liang suggest that FSCs lack authority to set macroprudential policies. To promote effective coordination and enhance financial stability, the authority of FSCs must be widened, and macroprudential policy set to address cyclical financial stability risks more effectively.
https://www.brookings.edu/wp-content/uploads/2017/08/es_20170808_liang_newfinancialstabilitygovernancestructures.pdf
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