Since the mid-2000s, however, interest payments as a share of income have declined as the effect of declines in interest rates have more than offset the effect of higher levels of debt.
An objective-based setup thus promotes a transparent consideration of interests. In addition, linking the regulatory objectives to the supervisory structure also improves supervisory efficiency. In particular, a major advantage of objectives-based supervision is that responsibilities are consolidated in areas where natural synergies take place.