Let me examine variation factors influencing the two aforementioned CPI categories based on the concept of the Phillips curve, which is frequently used in macroeconomic analysis. The flexible CPI is considered to be susceptible to the business cycle or the output gap, whereas the sticky CPI is deemed to be susceptible to medium- to long-term inflation expectations.
Notably, approval of the higher debt levels has been given on the condition that the small bank holding companies demonstrate the ability to service debt without straining the capital of their subsidiary banks and, further, that the companies restore their ability to serve as a source of strength for their subsidiary bank within a relatively short period.