Further, large doses of liquidity support to financial markets by regulators against collateral may also involve quasi-fiscal costs, under some circumstances. Fourth, whether there is, what may be called, financialisation of the political economy?
As we bring these new frameworks and expectations to life, the culture and behaviours of how we work together will be more important than ever. Intensifying our scrutiny of entities’ risk and compliance potentially could drive more adversarial positions between the Bank and financial institutions.