For the policies to be accepted, therefore, a high degree of public transparency and accountability is needed. Equally, for banks responsible for implementing macroprudential policies, they need to buyin to the broader benefits to financial stability, and the importance of investing in their systems and compliance capability. From the start of our use of macroprudential policy tools, social acceptance has been important for us.
This included our Memorandum of Understanding with the Minister of Finance, which ensured that we were in agreement on what tools we could use and how we could use them.