This would involve the Internal Capital Adequacy Assessment Process (ICAAP) allowing banks to undertake an assessment of the capital commensurate with all their risk exposures. We are also driving the disclosure requirements in conformity with pillar III of the Basel accord to enhance appropriate information flow to market participants.
Against this background, it is imperative to ensure that medium to longer-term inflation expectations remain firmly anchored at levels in line with price stability. This is all the more the case in an environment of very high uncertainty. Broad-based second-round effects stemming from the impact of past energy and food price increases on price and wage-setting behaviour must be avoided.