Meanwhile, we have set up differentiated and tiered regulatory indicators for banks in different groups, as well as a transition period of over one year. These arrangements urge banks to prepare proper capital plans to enhance their risk resistance, without triggering heavy capital replenishment pressures on them.
This way, we can avoid the credit squeeze effect and safeguard the capability of the financial sector in serving the real economy. 1/3  BIS central bankers' speeches  Second, we implement the monetary policy and the macroprudential policy in a coordinated manner. A stable monetary policy environment is essential for a sound banking system.