Indeed, in the light of recent and rapid financial innovation, state of the art disclosure needs to keep up. Basel II seeks to raise the bar on the quality of disclosures, especially related to more complex credit risk intermediation activities, covering areas such as counterparty risk, securitisation and credit risk mitigants.
For example, while it should be noted that the Bank's monetary policy does not target foreign exchange rates, the fact that Japan aims at achieving the same inflation rate as many other economies, including the United States and Europe, is likely to stabilize foreign exchange rates from a long-term perspective, and thereby contribute to establishing a business environment that enables firms to make decisions easily and continue with their activities without unnecessary anxiety.