The second study suggests the need for coordination between monetary policy and countercyclical macroprudential policy, to avoid conflicts in the use of their respective instruments (e.g., interest rates and bank capital ratios).
We are also improving supervision, and giving it a greater macroprudential focus, through enhanced consolidated supervision and through the development of new supervisory tools – including comprehensive horizontal reviews, off-site quantitative evaluations, and more extensive information gathering. We are moving quickly to bring unresolved issues to the attention of senior management and requiring prompt responses.