It may well be some time before the central bank can sell on the asset at a reasonable price. This might well be justified to prevent firesale dynamics taking hold, but it should be recognised for what it is, which is not market-making. The potential implications for central bank balance sheets also need to be thought through.
It is however, important to note that increased innovation comes with increased risks. I therefore urge Orient Bank to design robust risk management processes and internal controls to mitigate the risks inherent in technological advancement. Turning to today’s event, the new Acacia Mall is in a very strategic location, as illustrated by the number of banks that have established outlets at this Mall.