This approach will demand greater cooperation between local and external regulators, requiring them to develop an integrated picture of the financial system, considering not just banks, but also all financial institutions. The analysis of macroeconomic vulnerabilities that could subsequently impact on financial system liquidity or solvency should also be embedded in the regulatory framework.
Developments in Economic Activity and Prices I would like to start my speech with a look at developments in economic activity and prices. Following the discussion at the Monetary Policy Meeting (MPM) held on October 30 and 31, 2018, the Bank of Japan published the Outlook for Economic Activity and Prices, or the Outlook Report.