Non-bank financial intermediation The last crisis highlighted the need for better data to understand, and better policy to strengthen, the balance sheet resilience of households and lenders. However we must be careful not to just focus all our resources on the data gaps that were exposed in the past. We also need to develop tools to understand the world as it has changed.
The recent crisis on sub prime mortgages in the United States is a classical example. While this crisis appear to have a long tail, we are somewhat insulated from its impact by our fixed exchange rate and the narrow range of our allocation of foreign assets. You see for Fiji we only have cash in our investment portfolio. This is not entirely by choice.