In fact this is not within the Central Bank’s power, nor could it be. Intervention into the property rights of creditors is a matter for legislation under the Constitution (or Government fiscal action – the latter remaining highly unlikely given overall fiscal pressures).
Let me start by walking you through this framework, and then I will illustrate how we apply it. The FSB's financial stability framework is based on four guiding principles. First, we need to identify the vulnerabilities that may threaten global financial stability. I say 'vulnerabilities' instead of 'shocks' or 'risks'. That is intentional. The pandemic is a shock.