The collective view of the Policy Board has been that risks are balanced on the whole.1 II. Measures taken by the Bank  Next, I will outline the policy measures taken by the Bank following the Lehman shock. A.
Measures to address the financial crisis  After the failure of Lehman Brothers in autumn 2008, financial market participants around the world became overly cautious about a possible chain reaction of bankruptcies and started to retain funds as on-hand liquidity rather than lend them to other participants, resulting in a sharp financial contraction.