I believe that adequate stress and scenario testing for potential asset expansions arising from liquidity shocks is crucial. 6  Bank for International Settlements (2008), "Liquidity Risk: Management and Supervisory Challenges," February 28. 7  Financial Stability Forum (2008), Interim Report to the G7 Finance Ministers and Central Bank Governors, February 5.
Thereafter, it is expected to turn positive and then increase gradually along with the effects of such factors as the decline in crude oil prices dissipating and the economy improving. II. Conduct of Monetary Policy Next, I will explain the Bank’s conduct of monetary policy. The Bank has enhanced monetary easing in response to COVID-19.