It is still impossible for the BOK to hold an on-site examination when it judges this warranted. It was a big issue whether to give the BOK the power of independent examination, even at the time of reforming the financial supervisory system in 1997. On that occasion, the BOK took the position that it should be free to examine banks at its own discretion.
To pursue that goal, the Federal Reserve has been aggressive. In nine months, we have raised the target range for the federal funds rate from near zero to 3-3/4 to 4 percent, a historically rapid pace of increases.