The banking system is substantially better prepared to manage unexpected shocks today than it was before the financial crisis. Now, when the waters are relatively calm, is the right time to step back and examine the efficiency and effectiveness of our protection against future storms. With the EGRRCPA, Congress made a significant down payment on that task.
Also, as liberalization of deposit and lending rates proceeds, banks' lending stance and firms' funding needs become more sensitive to changes in interest rates. Based on its experience, the BOJ shifted to interest rate control in conducting monetary policy.