Effective microprudential policy frameworks should promote robust domestic financial institutions that are able to suitably intermediate both domestic and foreign capital. Prudential regulation should also be alert for risks from abroad, such as a buildup of liquidity risk, foreign currency exposure, or, more generally, inadequate intermediation of foreign credit.
We were perhaps amongst the first few central banks to have set up a special quarantine facility with about 200 officers, staff and service providers, engaged in critical activities to ensure business continuity in banking and financial market operations and payment systems.