There are risk-management methodologies to deal with such unsettled amounts through collateral and credit limits. As an ultimate measure to reduce such unsettled amounts, however, a central bank might be able to take decisive action in terms of time and provide settlements with finality also at night and on weekends. Indeed, such action is now being considered in Europe and Australia.
Therefore, we welcome the Fund’s contribution to the global development of macroprudential policies and invite further research on their effectiveness and impact. In this respect we encourage the Fund to continue gathering information on the best practices from the in-depth analyses and cross-country comparisons. The low interest rate environment poses additional challenges for the effectiveness of monetary policy.