The economy rapidly deteriorated in the latter half of 1997 against the backdrop of a slowdown in overseas economies due to the Asian crisis, increased uncertainty with respect to the domestic financial system, and downward pressure from the fiscal front. The next recovery phase, from the beginning of 1999 to the latter half of 2000, is still clear in our memories.
We are working to produce a wellintegrated set of rules that will significantly strengthen the prudential framework for large, complex financial firms and the financial system.