In other words, the Treasury functions at banks need to be modernized with urgency, subjected to careful scrutiny by Boards, overlaid with prudent risk management practices, and trained to employ hedging instruments specifically targeted at managing interest rate risk. This takes me to the important issue of how banks should manage large changes in yields.
It is essential for us to carefully monitor the developments in both real and financial sectors, and to modulate our policies in tandem with the global developments so that global integration continues to be a positive sum game for all the countries.