The new supervisory approach will be two-pronged – first, strengthening the internal defenses of the supervised entities; and second, greater focus on identifying the early warning signals and initiate corrective action. 18. To strengthen the internal defenses, higher emphasis is now being given on causes of weaknesses than on symptoms.
The search for yield in the low rate environment has increased the demand for  13  There is evidence that the lower interest rate environment in the United States adversely affects money market funds, see Kacperczyk, M. and M Di Maggio, 2014, “The unintended consequences of the zero lower bound policy”, Working Paper, Columbia Business School.