Another important aspect is your commitment to maintain strong capital positions not simply for compliance but for prudent control of leverage. Management should ensure that your banks have sufficient buffer whenever risks turn into losses, through careful allocation of scarce capital to alternative exposures.
In order to create a virtuous cycle between a moderate rise in prices and increases in corporate profits and income, it should be widely recognized in society that wages rise continuously under a sound economy. The Bank expects that efforts by both labor and management to realize the virtuous cycle will become widespread by taking advantage of tailwinds of the current favorable economic environment.