Changing the public’s expectations as a main challenge on monetary policy is surely unprecedented in the history of central banking. It is for this reason that the Bank is pursuing this policy with a strong determination to cultivate the frontier of monetary policy making.
The effective increase in capital is even larger once the tougher definition of capital is factored in. In total, the largest banks will have to hold at least seven times as much capital as before the crisis. While these measures are scheduled to be implemented over the next six years, banks are not waiting to rebuild confidence in their creditworthiness.