The BIS leader indicated that current market changes have fundamentally altered the landscape for risk management. Carstens suggested that the cumulative pressure of sovereign liabilities and shifting leverage patterns may prevent central banks from exerting the same level of stabilization during a downturn as seen in previous episodes.
Wednesday, October 21, 2026
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BIS Warns Sovereign Debt Levels Impede Future Crisis Response
Global Markets15 days ago
Rising bond yields and an increase in non-bank leverage could weaken the power of monetary authorities to halt a systemic financial crash. Agustín Carstens, the chief of the Bank for International Settlements, warned on October 5 that these factors, combined with record-high levels of government debt, would make the next financial crisis more difficult for central banks to control.
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