We also want banks to target their investments where they can have the greatest positive impact on risk measurement and management. In other words, we are not looking for large expenditures in areas for which the benefits will not be material.
Adopting a more activist policy stance in the current situation, as some outside observers recommend, would only exacerbate uncertainty without helping to resolve the causes of the turbulences, which are outside the realm of monetary policy. Market participants have to bear the consequences of their excessive risk taking.