The assignment is a report requested by the manager of banking policy team at a central bank. As the central bank’s junior analyst, you have been asked to prepare a report on the financial intermediation and financial stability in the domestic banking sector, which will be submitted to the senior management. The aim of the report is to continue monitoring the effectiveness of the current macroprudential policies in the finance and banking sector and any issues observed. You should also, where appropriate, use references to support your analysis.
