Moreover, the Basel II capital framework will be strengthened in a number of areas, including the treatment of securitisation activities, trading book exposures and exposures to off-balance sheet vehicles. In addition, principles for sound liquidity risk management and supervision have been published, also by the Basel Committee. 2 It is now very important to maintain the momentum of implementation for the remaining issues.
When the recent financial crises erupted in 2008, there was an emerging consensus in the world on the good strategies for central banks. This consensus emphasized the objective of price stability, which could be pursued by a suitably informed interest rate policy and the careful management of inflation expectations.