First, economies with fiscal problems must proceed with drastic fiscal reforms as well as economic structural reforms, such as reforming the labor market and maintaining and strengthening the soundness of financial systems.
Although the compilation of such statistics places a burden on those providing the data, such data represents one critical part of the information necessary to ensure the stability of the financial system.
When balance-sheet adjustments have been progressing, massive liquidity provision by central banks has not been affecting the rate of inflation, but has contributed substantially to restoring stability in the financial system.
The Bank will strive to conduct proper monetary policy, and closely monitor developments in international financial markets and do its utmost to ensure the stability of the financial system in Japan.
To achieve the two objectives of price stability and financial system stability, the policy authorities responsible for one of the two objectives are given independence and need to be properly accountable for explaining their decisions.
Mr. Mieno was the first governor of a central bank among advanced countries to face the challenge of simultaneously achieving the two missions-- price stability and financial system stability-- that other advanced countries subsequently confronted.
The Bank takes the following initiatives to maintain financial system stability and people's confidence in financial services, and ensure that new information technologies contribute to enhancing the welfare of financial service users as well as the efficiency of such services.
Maintaining price stability and financial system stability are important goals of central banks, but central banks are not able to solve all problems, especially in an economy characterized by zero interest rates and deleveraging.
In relation to ensuring financial system stability, one lesson might be that'it is important to gauge with a sharp distinction between micro-level risks, such as risks of individual financial institutions, and risks of the financial system as a whole.
Both the central bank and the deposit insurance corporation do not draw much attention under normal circumstances, and their presence stands out only when depositors and financial market participants do not have full confidence in the soundness of financial institutions and financial system stability.
Although it is truly regrettable that we have seen yet another financial institution fail, the fact that a resolution scheme has been so promptly agreed upon through discussions among the relevant parties should be highly evaluated from the viewpoint of protecting depositors and ensuring financial system stability.
Competition among financial institutions to provide various financial services and develop advanced risk management techniques will not only strengthen financial institutions' ability to provide value-added services but also enhance the functioning of financial markets, thus leading to increased financial system stability.
Such accommodative financial conditions have underpinned the economy, and the Bank's large-scale fund-provisioning measures have contributed-- in certain phases-- to maintaining financial system stability and preventing the economy from falling into a deflationary spiral.
Be that as it may, the recent crisis has shown clearly that it is indispensable for central banks to be involved in one form or another in ensuring the stability of the financial system and that central banks should play a significant role in the area of macroprudential supervision.
He then argued that when using financial regulations with the aim to stabilize the financial system, the goal of economic growth may not always be achieved at the same time, and there may even be negative impacts on the economy.
If we follow this line of reasoning, in order to ensure thestability of the financial system, microprudence, which secures the soundness of individual financial institutions, and macroprudence, which pays attention to risks to the financial system as a whole, are both equally necessary.
Likewise, even if such an insurance program were to be created, it would not in any way reduce the importance of accurately communicating information on financial system stability to market participants and the general public in a manner that avoids amplifying uncertainties.
We have seen this in the past, regulation introduced a new type of products in the market, but at the same time regulation needs to guarantee the stability, preserve thestability of the financial system and protect the users.
As described, in coping with deflation, what becomes a key is first, to keep improving the supply and demand balance of the economy as a whole, and second, to prevent a vicious circle between economic activity and prices, especially to maintain thestability of the financial system.
The Bank continues to utilize the information obtained through on-site examinations for financial stability policy and monetary policy, thereby contributing to the stability of the financial system and the revitalization of the Japanese economy.
English
中文
عربى
Български
বাংলা
Český
Dansk
Deutsch
Ελληνικά
Español
Suomi
Français
עִברִית
हिंदी
Hrvatski
Magyar
Bahasa indonesia
Italiano
Қазақ
한국어
മലയാളം
मराठी
Bahasa malay
Nederlands
Norsk
Polski
Português
Română
Русский
Slovenský
Slovenski
Српски
Svenska
தமிழ்
తెలుగు
ไทย
Tagalog
Turkce
Українська
اردو
Tiếng việt