While the outlook for the global economy, which lies behind such a view, is basically similar with that of other central banks in advanced economies and not the Bank’s unique view, the Bank thoroughly recognizes that the outlook is associated with considerable uncertainty.
Moreover, guidance is warranted by auditors and supervisors with the aim of enhancing the clarity and robustness of structured product valuations, particularly in relation to illiquid assets. Second, credit rating agencies, whilst eliminating conflicts of interest, should take measures to expand the scope of information provided to investors – thus facilitating their exercise of due diligence, while improving governance and rating methodologies.