<h1>Senior central bank official calls for coordinated, proportionate regulation to balance financial stability, innovation, and consumer protection</h1> A senior central bank official's address outlines legal and policy considerations for regulating an interconnected financial system, surveying models of oversight (sectoral, integrated, Twin Peaks, two-agency), and stressing trade-offs among principle-, rule- and outcome-based, activity- and entity-based, and risk- versus rules-based approaches. It identifies regulatory challenges - fintech partnerships, AI, climate-related financial risk, data gaps, capacity constraints, and overlapping jurisdictional supervision - and urges stronger inter-regulatory coordination, lead-regulator frameworks, regulatory impact assessments, periodic review of rules, reduced compliance burdens, sandboxes, and consumer-centric measures to balance stability, innovation, and market conduct.