The second issue that we need to address is where the “resolution authority” should lie – in particular, whether DICGC should have a more proactive role in the supervisory framework to aid early identification of bank failures and their effective resolution. Over the last fifty years, DICGC has done a good job in performing its “pay box” role.
Some have noted the importance of enhancing policy effects by encouraging a decline in longer-term interest rates, and others have mentioned the need to conduct asset purchases under the Program smoothly and to ensure the sustainability of the purchases.