Therefore, policy-makers need to set proper incentives to promote “good” deleveraging and to steer clear of “bad” or “ugly” deleveraging. Monetary policy has a vital role to play here, notably by providing the necessary liquidity support.
The new board structure includes representatives of the major banks, the mid-sized and foreign banks and 2  2  Lowe P (2005), ‘Innovation and Governance of Payment Systems’, address to Banktech.05 Conference, Sydney, September. BIS central bankers’ speeches  the credit unions and building societies. It also includes an independent chair and two other independent directors.