Only a part of these could be explained by differences of risk profiles. But another substantial part of the variation arose not from differences in the riskiness of bank portfolios, but instead from other factors that are due to modelling problems – for example, some banks gamed model weaknesses, and some of the terms specified by supervisors proved to be problematic.
Some of the key points gathered at this seminar include but not limited to the following: a. That effective central bank communication requires a consciously designed strategy in line core mandates, the adoption of the most suited medium, and with specific target audience in mind; b. There is also the need to have specific strategies for monetary policy and financial stability.