The premise behind this approach is that the health of the financial system can be solidified by monitoring and controlling the risks assumed by individual banks and by requiring appropriate levels of capital and liquidity to support their operations. To the extent these supervisory objectives can be met, the risk of serious failures and safety net losses can be reduced.
For example, in developing this high-value denomination we considered a variety of factors including the size and distribution of the population, trends in volumes and types of trading activities, wage levels, various means of payment, different mediums of cash disbursement, availability of banking facilities, inflation and the general economic situation in the country.