In September, the Federal Reserve announced plans to begin unwinding its huge balance sheet while the European Central Bank (ECB) is also about to drastically cut its stimulus.
Improved global growth prospects and signals from both the Federal Reserve and The BIS said that the ECB will consider adopting a prudent approach in the future, which would explain the stubbornly low returns, although it also triggered a "deeper question" .
"Can an adjustment be considered if the financial conditions are unambiguous, and if the answer is 'no', what should central banks do? Borio said.
The BIS, known as The central bank, which has 60 members and aims to help central banks seek monetary and financial stability, was one of the few organizations that warned investors about the unstable levels of bank loans on risky badets, such as US subprime mortgages, which eventually led to the global financial crisis.
The chief economist of the organization at that time, William White – Since then, the chairman of the OECD review committee said that the level of global debt was it had shot to unstable levels in response to low interest rates and that the financial situation was now "worse than in 2007."