The board approved internal control policies covering various aspects of management of risks arising both on and off balance sheet exposures constitute the first line of defence to the bank.
As it is, interest costs are reducing the real money available for government to spend – reducing the real value of budgets. And these costs have also doubled in the past five years, to nearly 5% of GDP. Furthermore, a higher risk premium has spread through the rest of the economy, disincentivising investment by raising the cost of capital.