This is based on the recognition that the central bank should not only play its traditional role as lender of last resort, through the supply of urgently needed liquidity in times of crisis, but also prevent financial system instability by means of the macro-prudential policies newly put forward to restrain the systemic risks seen to have been at the root of the global financial crisis.
In fact, the US and the UK which were the epicenters of the global financial crisis are already reorganizing their relevant systems in this direction. Another weighty duty that we must carry out as a top priority is timely improvement of the central bank’s method of conducting policies in line with the changing economic environment that we are currently addressing.