As we, collectively, moved through the experience, we did not have much opportunity to share details on how we worked together to forge a coherent path. In outlining the many steps we took together, I hope to provide an anatomy of coordination through crisis. Given the openness of information sharing, FSB members were able to quickly identify areas of concern that required action.
In these circumstances, the Bank of Japan decided to purchase stocks held by commercial banks. This measure was very unorthodox, but was an effective tool in ensuring stability in the financial system and the real economy through the reduction of market risk associated with banks’ stockholdings.