And own funds should be designed to absorb unexpected losses. The second: Financial reporting and financial stability supplement one another. They are like a horse and carriage. I believe a combination of transparent capital requirements and accounting concepts based on expected losses, would boost trust in financial institutions and thus improve financial stability.
For example, the Bank does not officially use the term “forward guidance” to describe its communication strategy, but it could be regarded as such. Essentially, forward guidance is aimed at enhancing the effectiveness of monetary policy. It can be classified into two types depending on the objective.