The guidelines also prescribe that the degree of sophistication of a bank’s risk management infrastructure – including, in particular, a sufficiently robust data infrastructure, data architecture and information technology infrastructure – should keep pace with developments such as balance sheet and revenue growth.
Returning the balance sheet to an appropriate and manageable level will be an important additional step toward addressing high inflation. I expect that these steps will contribute to an easing in inflation pressures in the coming months, but further steps will likely be needed this year to tighten monetary policy.