In general, it is to be expected that monetary and macroprudential policies work in a complementary way toward the achievement of their objectives, and thus mutually strengthen one another.7 However, the possibility of conflict exists. Thus, for example, evidence shows that loose monetary policy can fuel risk taking and excessive leverage, accentuating financial system fragility.
2/3  BIS central bankers' speeches  Third, by strengthening write-offs and disposal of bank non-performing loans (NPLs), we made efforts to solve the sustainability problem related to the support of the financial sector for the real economy. Under the impact of the pandemic, bank NPLs will edge up.