The Bank also recognizes the risk that continuing powerful monetary easing will cumulatively affect financial institutions' strength, mainly through a decrease in their lending margins, and thus the functioning of financial intermediation will be stagnant. The Bank intends to continue paying careful attention to the risks considered most relevant to the conduct of monetary policy.
On the other hand, the Bank seeks to determine the banking sector’s capacity to absorb negative shocks. For this purpose, it utilizes data on bank profitability and capital adequacy and also takes account of the results obtained from stress tests.