Is it possible that this credibility bonus is partly responsible for the upward pressure on the housing and equity prices becoming a global phenomenon?" 4  4  Keynote address at the Regional Seminar on Central Bank Communications sponsored by the International Monetary Fund, held at Mumbai on January 23, 2006.
The interaction of market and credit risk is simply too complex to be recognised without a proper methodological framework. Both bank practitioners and regulators therefore need input from researchers. Researchers, in turn, need to learn from regulators’ and bankers’ experiences. Finally, bank practitioners and regulators are in close contact either way, and should be so.