In a report issued Wednesday, Federal Reserve Vice Chairman Timothy F. Geithner warned banks and settlement and payment systems to review their risk management controls in an effort to avoid any potential disruptions in financial transactions.

The Bank of International Settlements report suggested that system operators, financial institutions and service providers must broaden their understanding of payment and settlement risks. As global interdependence increases, there are important implications for ensuring that disruptions do not spread throughout the entire financial systems.

"Recent market conditions emphasize how important it is that the settlement infrastructure supporting financial markets is robust and reliable, even in adverse conditions," said Geithner.

The report noted that the ability of systems to provide minimum service levels and the ability of systems and institutions to continue to conduct activity in the event of a problem are especially useful in containing the impact of a disruption.

The committee suggested that central banks review and adjust their policies to reflect the challenges that the interdependencies bring.

By Steve Stecyk and edited by Cristina Markham