Although the focus currently is on the near-term monitoring of risks and ensuring a coordinated international response to the COVID-19 shock, the stresses experienced in March further highlight the underlying structural issues relating to some segments of the funds sector. Risks such as liquidity mismatch and leverage continue to be part of our focus.
We are thinking hard about how we can mitigate these risks. Over the medium-term, one key area of focus needs to be developing and operationalising macroprudential tools for market-based finance. In the case of the banking sector, we have seen the benefits of building resilience in good times and allowing that resilience to be used when shocks hit.