However, even if interest rates rise by this degree, as long as the rise is accompanied by improved developments in economic activity and prices, there are no major concerns over possible instability in the financial system, as financial institutions’ profits will be boosted, for example, by an increase in lending, improvement in interest rate margins on loans, and a rise in stock prices.
The Financial Intelligence Unit, established at the Bank, has enhanced the effectiveness of its role as a junction between reports by intermediaries and investigations, to which it makes an active contribution.