With regard to the transmission channels for the effects of unconventional monetary policy under the zero interest rate policy, enhancing monetary easing – by committing to continue the virtually zero interest rate policy into the future and by increasing asset purchases – would induce a decline in longer-term interest rates and risk premiums through both the interest rate channel and the portfolio channel.
This framework now includes measures to increase the resiliency of the financial system; enhanced  1  See Bordo (2007). -2monitoring of financial institutions and of building risks to the system; and measures, such as resolution planning, that require firms to take steps today to better prepare for future episodes of stress.