Since then additional arguments have been forwarded to explain why low and stable inflation can make the financial system more vulnerable - and in compliance with language used in BIS research papers I will label this the  10  See Kent and Lowe (1997), Brousseau and Detken (2001).
The neglect of screening and monitoring activities  Let me recall the essence of the screening duty of banks. Banks acquire and evaluate information about potential borrowers. At the heart of this duty is a thorough due diligence at the start of the contract and continual monitoring of the creditworthiness of the borrower and the quality of investment, as the project progresses.