The following four items can give us some direct impression of macro-prudential policies. Firstly, the PBC has established the macro-prudential assessment (MPA) system to assess whether financial institutions work in line with macro-prudential requirements. The MPA system contains a number of indicators, such as capital adequacy ratio and liquidity measures.
While we were buying assets aggressively to help bring the U.S. economy out of a severe recession, we also had to keep in mind whether and how we would be able to remove monetary policy accommodation when appropriate.