Federal Reserve Chairman Ben Bernanke said today that the government must avoid imposing burdensome rules on financial companies as it carries out the largest regulatory overhaul in seven decades, Bloomberg reported.

“No one’s interests are served by the imposition of ineffective or burdensome rules that lead to excessive increases in costs or unnecessary restrictions in the supply of credit,” Bernanke said in a speech in Chicago. “Regulators must aim to avoid stifling reasonable risk-taking and innovation in financial markets, as these factors play an important role in fostering broader productivity gains, economic growth and job creation.”

Bernanke and Fed officials are trying to balance the need to reduce the risk of repeating the 2007-08 financial crisis with the aim of reviving the economy. The central bank, under last year’s Dodd-Frank Wall Street Reform and Consumer Protection Act, was given the job of overseeing the largest financial companies.

“While a great deal has been accomplished since the act was passed less than a year ago, much work remains to better understand sources of systematic risk, to develop improved monitoring tools, and to evaluate and implement policy instruments to reduce macroprudential risks,” Bernanke said.

Bernanke has backed a so-called macroprudential approach to supervision that looks at patterns across different companies and markets and not just at individual firms.