The Imperative of Continuing Research The Federal Reserve’s work continues to explore an array of CBDC design choices and the challenging consideration of policy tradeoffs that this multitude of choices presents. It is imperative that each of these tradeoffs is carefully evaluated and thoroughly understood.
The main reason behind such low interest rate margins of Japanese financial institutions is attributable to the fact that many financial institutions have basically been consistently in the interest rate competition as they compete with each other in the relatively homogenous commercial banking business with an aim to obtain a long-term stable transaction relationship.