Meanwhile, private banks are keeping their cautious lending stance as they face the worsening performance of borrower companies. However, the enhanced credit guarantee system has been actively utilized. Such government policy measures and the Bank’s new measures to facilitate firms’ financing activities have presumably contributed to easing the once seriously tightened credit conditions.
The crisis response in all of our jurisdictions has involved a wide range of regulatory interventions, from enhanced stress-testing capabilities and communication strategies to the development of the macroprudential toolkit.