I hope that before long a consensus will be reached, under the aegis of the G20, on indicative guidelines for current account positions designed to resolve the global imbalances. The existing framework of global financial regulation was largely designed with advanced countries and the banking sector in mind.
The decline in deposit rates has more or less mirrored the reduction in policy rates, while lending rates for households and the corporate sector have declined a little less. The result is higher interest margins for the banks, at a time when losses are expected to increase for a period to come.