In response, they loosened monetary policy, with sharp declines in policy interest rates. Their credible inflation-targeting frameworks, flexible exchange rates and resilient financial systems meant that such countercyclical monetary policy easing was effectively transmitted into lower real interest rates along the maturity spectrum.
On page 97 it reads: “Progress to achieve greater stability has been made.” I can confirm that suggestion. Looking back the last 12 month a lot has been done. Big banks are undergoing deep restructuring. Small and mediums sized banks are adapting to the low interest rate environment, as our LSI-stress test revealed. Public-sector banks are heading for new horizons.