Lenders’ Boards are expected to monitor implementation of the plan, and to obtain formal progress reports (signed off by senior management) at least bi-annually. Conclusion As I noted at the start of my remarks today, the provision of credit is a critically important function of the financial services system.
That said, it is unclear to what extent the stress in the banking system will weigh on economic activity. If banks feel they need to adjust their business models or are uncertain about the stability of their deposit base or the momentum of the economy, they may tighten credit conditions and curtail lending.