Generally speaking, the reason behind a decline in the natural rate of interest is one of the following: an increase in savings, a decrease in 7  Jerome H. Powell, "Monetary Policy in a Changing Economy," speech at a symposium titled "Changing Market Structure and Implications for Monetary Policy" held in Jackson Hole sponsored by the Federal Reserve Bank of Kansas City, August 24, 2018, https://www.federalreserve.gov /newsevents/speech/powell20180824a.htm; and Richard H. Clarida, "Models, Markets, and Monetary Policy," speech at the Hoover Institution Monetary Policy Conference titled "Strategies for Monetary Policy" held at Stanford University, May 3, 2019, https://www.federalreserve.gov /newsevents/speech/clarida20190503a.htm.
While the supervisory challenges posed by the specific sectors of the financial system may vary, devoting more time to sectors and activities perceived to be of highest risk should be prioritised. Risk-based supervision provides a rigorous framework for assessing and addressing risks and efficient allocation of resources, which can improve the efficiency and effectiveness of all supervision.