In its oversight of FMIs, a central bank seeks to establish a common understanding with FMI operators and other stakeholders on ways to maintain and improve the safety and efficiency of FMIs, and support their efforts for improvements.
Both elements are part of our risk-management approach to monetary policy. Over time, stimulative monetary policy may cause vulnerabilities to build up. That was part of our thinking in late 2013, when inflation was running persistently below target: we were concerned about the downside risks to inflation, but decided against easing policy further to avoid exacerbating growing household indebtedness and elevated house prices.