Separately, a significant policy process would be required to consider the issuance of a CBDC, along with extensive deliberations and engagement with other parts of the federal government and a broad set of other stakeholders. There are also important legal considerations.
6  This hypothetical banking system consists of six major banks whose main balance-sheet parameters (capital ratio level, reliance on short-term funding and holdings of liquid assets) are in line with those observed in 2007  4  BIS central bankers’ speeches  The fact that the model is able to replicate this important stylized fact demonstrates that it has significant potential as a tool for assessing systemic risk.