For example, given the fact many asset prices are above long-term averages, and bond yields are close to their all-time lows, including historically minimum high-yield spreads, substantial corrections may occur.
The responsibility for maintaining a stable financial system rests with the Bank of Israel and we will fulfill that responsibility; but it also rests with the government and other regulators. The Financial Stability Committee is an appropriate framework for coordinating activity and for the monitoring of risks and will make it easier to deal with those risks at an early stage.