The prudential framework reinforces incentives for banks and their creditors to understand and manage the risks they take. In some areas, incentives alone are insufficient and we have imposed direct regulatory requirements.
Although the situation is improving, only 14 out of 34 banks offer derivative instruments to their clients today. Account managers in banks often do not understand how the derivative instruments could be used in helping the clients. Also the share of inter-bank FX forward trading remains very small – less than 5% of the overall market.