3  See Board of Governors of the Federal Reserve System (2010), April 2010 Senior Loan Officer Opinion Survey on Bank Lending Practices. 4  BIS Review 62/2010  taking other significant steps, including issuing proposed guidance to help ensure that compensation structures at banking organizations do not encourage excessive risk-taking.
The crisis proved that this was not true as a period of moderate inflation coincided with the build‐up of financial imbalances and asset price bubbles. It was hard to argue that conventional monetary policy using interest rates could and should be used to address those imbalances or prick asset price bubbles.