It has done this by supporting and enhancing the effectiveness of independent monetary policy and by helping the economy adjust to external shocks, primarily significant fluctuations in commodity prices. As you know, we are conducting a formal review of our monetary policy framework leading up to the 2021 renewal of our inflation-control agreement with the federal government.
In essence, the guidance points to the need for a better balance between the qualitative and quantitative elements of exposure assessment and management for all types of counterparties. Conformance of Federal Reserve Supervisory Guidance with Other Supervisors The development of supervisory guidance on sound risk management, like industry practices, is an evolutionary process enhanced by experience.