This has potentially significant implications for how banks in these markets are supervised. It is one of the great challenges of our work that as many banks’ operations and risk management frameworks become more global, the supervisory structure remains national.
The SARS virus in the 2000s provides some potential parallels, particularly through the effects on travel and confidence.18 15 See the Monetary Policy Handbook (Williams, et al., 2019). 16 See DiSavino (2020) for a discussion of the recent volatility in oil markets. 17 See Capital Review Decisions (2019) and the Reserve Banks’s Credit Conditions Survey.