Pillar II will also address those risk areas--such as interest rate risk--for which it is not optimal to develop a single pillar I rule applicable to all banks. Pillar III, as you know, calls for enhanced disclosure of risk exposures to the public.
The objectives of monetary policy at the beginning of the 1990s were to reduce the rate of inflation to the average rate of inflation in trading partner and competitor countries; to manage the money creation process in such a way that an adequate, but not an excessive amount of new money would be supplied to the system; to maintain positive real interest rates; to increase the gold and other foreign reserves to a comfortable level and to develop a sound financial infrastructure consisting of healthy financial institutions and financial markets.