This is the principle that lies behind the vigorous campaign waged by Anat Admati and Martin Hellwig to increase bank capital ratios, set out in their book, The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It, and in subsequent publications. 4 But at what level should capital and liquidity ratios be set?
I have divided my talk into the three areas mentioned, namely, monetary policy, supervision and governance. Managing and implementing monetary policy The Bank of Papua New Guinea deals with the monetary policy of the country, one of the major economic policies of the Government. The other policies include the fiscal or budget, wages, and employment policies.