Given the potential for procyclical actions, the size of the asset management sector and the risk of liquidity problems, some analysts have noted that the usual indicators of vulnerability that were designed for previous crises (mostly bank-driven), will no longer be very useful. 3 What is the appropriate policy response to the challenges posed by macrofinancial linkages?
In this regard, central banks, as the guardians of the financial system, are called upon by society to undertake the task of analyzing and examining macro-prudential policies and regulations. In line with this trend, the Bank of Korea was given responsibility for financial stability under revised legislation this August, so that it is now better placed to exercise its financial stability function more actively.