Central banks are equipped for their financial stability role but their state of readiness can be significantly improved, said Jaime Caruana, the general manager of the Bank for International Settlements (BIS).

Caruana said central banks that also have supervisory powers are well placed to add a macro overlay to their firm-by-firm supervision. He said those without such powers will need to find other ways to influence macroprudential settings. Asian central banks had been ahead of the curve with