Rather, “QQE with a Negative Interest Rate” further boosts the effects of existing policy measures by directly pushing down the short-end of the yield curve. In this sense, it can be called “enhanced QQE.” As I mentioned earlier, in the debate on monetary policy, the zero lower bound on nominal interest rates has traditionally been regarded as insurmountable.
One way we can adopt a tailored approach is by providing additional resources and tools for smaller institutions to assist with compliance. Regulators have already successfully developed compliance tools. These include the Board’s recently developed tools to assist community banks estimate their losses under the Current Expected Credit Loss, or CECL, accounting standard.