They also specify necessary safeguards and controls to mitigate risks associated with e-money business and ensure consumer protection safeguards. The two guidelines will come into effect in December 2014. Banking sector initiatives Mr. Chairman, a critical review of our banking sector indicates that while banks have weathered the recent macroeconomic challenges well, there are some red flags appearing in the horizon.
Under deflation, or a sustained decline in prices, a decline in prices of goods and services leads to a decrease in firms’ sales and profits, which in turn results in wage restraint. Consequently, the economy falls into a vicious cycle where sluggish consumption leads to a further decline in prices.