Thus, in a situation where downside risks concerning overseas economies seem to be increasing, it is necessary to bear in mind the possibility that the pick-up will lag behind by longer than expected. The Bank judges that it is becoming necessary to closely examine whether overseas economies will pick up while the aforementioned firmness in domestic demand is being maintained. II.
This owes in large part to efforts to enhance financial intermediation and improve risk management by banks. We also continue to improve upon the core aspects of banking operations and enhance the regulatory framework for the effective conduct of banking supervision. Specifically, our focus is on realigning local regulations with international standards, particularly those pertaining to corporate governance, financial reporting and capital adequacy.