The Central Bank must ensure that it maintains supervision standards that will ensure a continuing sound financial system. There is no room for complacency or special dispensation for participants in the financial system. Opportunities Despite the risks, the financial sector reforms have created the foundation for stability and growth, which provides an opportunity for the financial sector to introduce new financial products.
However, there are at least two disadvantages to this approach. First, the LCR and, at least at this stage of its development, the NSFR, both rest on the implicit presumption that a firm with a perfectly matched book is in a fundamentally stable position. As a microprudential matter, this is probably a reasonable assumption.