The required degree of transparency might well involve more-detailed types of reporting than for normal, ongoing, lending facilities. Finally, the problem of discount window stigma is real and serious. The intense caution that banks displayed in managing their liquidity beginning in early August 2007 was partly a result of their extreme reluctance to rely on standard discount mechanisms.
With this growing demand from consumers for a diverse mix of products and innovations, the financial sector requires an enabling environment to foster innovations to the changing financial market environment. However, we need to take appropriate measures to address any emerging risks and mitigate any potential impact to the financial system stability. 6.