Let me elaborate on these. Safety and soundness of financial institutions The safety and soundness of financial institutions is a function of effective legislation and prudential supervision. The Reserve Bank is concerned with the safety and soundness of financial institutions because at the end of the day, it is the depositor’s money that needs to be protected.
This also contributes to the low inflationary pressures, but on this front there is nothing monetary policy can do and there is nothing monetary policy should do, because it is a healthy adjustment in these economies. 2  BIS central bankers’ speeches  It sounds like you are pretty relaxed and there is no need to do anything?