The on-line auctioning system which is being run on a pilot basis is expected to go live this year, while the review of the primary dealers system is on course. Financial stability Let us rewind a little in time: an economic crisis surfaces, a financial institution – little-known beyond financial circles – fails, triggering a string of counterparty defaults across financial systems.
Hence, it is argued that capital requirements in the banking system should be so prescribed as to discourage lending banks also. In fact, the current policy is biased in favour of short-term lending. The current Basle Accord provides that all claims on banks incorporated in OECD countries and shortterm claims (i.e.