First, we want to see inflation rising to a level that is sufficiently close to, but below, 2 percent. This reflects our communication in July: realised and projected inflation are too low relative to our aim. Second, we have preserved the forward-looking formulation of our forward guidance, since the guidance has a medium-term orientation.
While banks were growing in size, integrating traditional lending and capital markets in ever more complicated ways and relying increasingly on vulnerable short-term wholesale funding models, many regulators around the world were at best failing to keep up with these changes. At worst, they removed older prudential limitations without substituting new measures designed to address the new realities of banking.