Thereafter, although stock prices recovered to the 20,000 yen level and the U.S. dollar/yen rate returned to the range of 109-110 yen through mid-January, financial markets both at home and abroad have remained volatile (Chart 1).
We are also examining how the regulations might be best applied during liquidity stress events to maximize the benefits for financial stability. Several other possible changes are also under consideration, including altering the LCR so as to limit certain arbitrage opportunities that appear possible from its current structure.