While fully recognizing these potential risks, I have nonetheless supported the concrete measures of QQE because I have judged that its positive effects on the economy outweigh, albeit slightly, the associated potential risks or side effects. However, if the current large-scale monetary easing were to be protracted or strengthened, there would be a possibility that the side effects would instead outweigh the positive effects.
Designing the “optimal model” of a regulatory and supervisory architecture is a daunting task. The empirical evidence does not prove the dominance of any particular model over the others, although several studies have pointed out that weaknesses in regulation and supervision might be factors leading to a financial crisis (Cihák, Demirgüç-Kunt, Martinez Peria and Mohseni-Cheraghlou, 2013).