East Asia saw greater domestic bond issuance during the crisis, in contrast with lower international bond issuance and a reduction in the amount of syndicated loan origination (Chart 3). This result tells us how important it is to develop domestic bond markets to make the Asian financial system more robust.
Enhancing the Effectiveness of Monetary Policy Lastly, I will touch on the effectiveness of monetary policy. For the conduct of monetary policy, central banks buy and sell financial instruments from capital markets, and they also receive financial instruments as collateral for the provision of liquidity.