Even if these issues could be addressed and a time-varying macroprudential measure developed and applied, there is some reason to believe that regulatory relaxation of such a requirement may not have much effect on the downside of an economic or financial cycle. Market discipline, which may have been lax in boom years, tends to become very strict when conditions deteriorate rapidly.
When an association of bankers start resembling the Belgian guy, I believe it has no raison d’être in our banking industry, more so if issues affecting its own members are not resolved in-house. I have been open. I have been frank. I have been candid. I have been straightforward. You have choices to make. The Bank of Mauritius, too, has choices to make.