BIS chief warns soaring debt, market changes could complicate future crisis response

Central banks will likely stay at the center of future financial crisis management, but rising public debt and shifting market structures could make their job harder, the Bank for International Settlements’ head said Monday. Speaking in Vienna, Pablo Hernández de Cos warned that debt near post–World War Two highs and persistent budget pressures may blur the line between genuine market dysfunction and investor concern about government finances. He also pointed to the growing role of non-bank financial institutions, whose leverage can amplify stress, citing 2020’s “dash for cash” and Britain’s 2022 gilt turmoil. He flagged rapid digital withdrawals, misinformation risks, and called for stronger regulation.