Nonetheless, from a somewhat long-term perspective, the competitiveness that enables one to succeed in the globalized economy comes from having differentiated products as well as highly value-added products. VII. Fiscal sustainability  Next, I will talk about fiscal sustainability – the sixth topic of my speech today. This is a particularly important issue for Japan from a somewhat long-term perspective.
A key macroprudential instrument to be included in the toolbox of authorities in the EU is the counter-cyclical capital buffer. The relevant authorities may require banks to hold an extra buffer of capital in addition to minimum requirements, for instance if credit growth in the financial system is deemed excessive.