This alternative policy option would tend to suggest that, due to the rather long lags in the operation of monetary policy impulses, the central bank should consider loosening - rather than tightening - its policy in anticipation of the bubble collapse. This would cushion the negative effects of the expected economic downturn in a forward-looking manner.
6  BIS Review 156/2009  The issue of regulatory perimeter being raised internationally in the post crisis scenario had also confronted us in the context of growing systemic significance of non-deposit taking nonbanking financial companies. The focus of regulation in India used to be on deposit taking non-bank institutions.