Before explaining these two new resources, we need to take a step back and remember the two basic premises of monetary union. The first is monetary stability, defined as price stability. The second is the stability of public finances.
To sustain these actions, financial institutions need to upgrade the integrated risk management system, in which various types of complex risks are controlled in a consolidated manner, and construct a framework to deploy capital more efficiently. A draft of the new Basel Capital Accord released at the end of June has adopted a risk-sensitive framework to encourage the upgrading of risk management.