Second, I will argue that securities financing transactions (SFTs) are a leading example of the kind of arrangement that can give rise to such externalities, and hence are particularly deserving of policy attention.
The Bank’s view on recent economic and financial developments, determined by the Policy Board at the Monetary Policy Meeting held on October 13, as the basis of monetary policy decisions. BIS Review 88/1998  -2-  have rebounded slightly reflecting intensified market concern toward Japanese financial institutions’ funding in foreign currencies over the year-end.