Therefore, it is to the mutual benefit of both parties to co-operate in the sharing of information and analysis as they set their policies. For example, it is important for the Bank to recognize that government policies can affect the production potential of the economy through their effect on sustainable labour utilization rates and the level of productivity.
The new environment creates some structural and strategic challenges for the global financial industry. Much-reduced financial engineering and weaker financial institutions are likely to see some retrenchment of certain banking activities.