Figure 6 Population growth (5 year moving average)  Source: World Bank  d)  Preferences for savings  As I have mentioned, if people decide to save more and consume less a lower interest rate would be required to boost the pace of activity and inflation and reconcile saving and investment plans.
This ensures that banks can fail in an orderly manner. The failure of a bank must not pose a threat to financial stability or to public funds. Recent bank failures have shown that the new system works; supervisory and resolution authorities have cooperated smoothly and effectively. This new institutional set-up is a good basis for reducing risks, but it needs further refinement.