Before I talk of cheese let me begin by chalking out two issues on the expenditure side in the future scenario. This chalk may serve to highlight the quest for cheese. First and foremost, banks would need to invest heavily in technically qualified professionally skilled staff. For this you recognise to invest in ARMS i.e. Attract, Retain and Motivate Staff.
Initially, the macroprudential tools that we introduced were LVR restrictions on residential mortgages and core funding ratios for banks. While we introduced core funding ratios, we have only rarely adjusted them, so I will focus here largely on our experience of LVRs.