The PSMB serves as the industry-level cooperation and governance body composed of qualified banks and e-money issuers. By organizing as a formal body, participants can effectively identify and drive strategic initiatives to promote the efficiency and resilience of the system and promote the sustained growth of the industry.
Our analysis does not explain precisely how monetary policy affects risk, but we can make reasonable conjectures. For example, tighter monetary policy may raise the riskiness of shares themselves by raising the interest costs and weakening the balance sheets of publicly owned firms (Bernanke and Gertler, 1995).