the price situation from next month onward. v. future monetary policy let me conclude my speech by briefly mentioning monetary policy for the near future. as i have indicated today, we believe it is necessary to achieve the 2 percent price stability target as swiftly as possible in order to overcome 15 years of deflation and prevent a recurrence of deflation. as the state of deflation has continued for many years, in the process of transitioning to the 2 percent target, various changes might occur in the economic and social system. however, if comparing the economy in which good and expanding equilibrium has been achieved under the 2 percent price stability target with that of deflationary equilibrium during these 15 years, there will be no room for denying that the former is desirable. what is important is not to fear changes but to look for a style of business and living that suits the economy after overcoming deflation. the qqe has been steadily exerting its intended effects and japan ’ s economy has been following a path toward achieving the 2 percent price stability target as expected. the bank will continue with the qqe, aiming to achieve the 2 percent price stability target, as long as it is necessary for maintaining that target in a stable manner. it will thoroughly examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate. if, in the future, the outlook will change due to the manifestation of some risk bis central bankers ’ speeches factors and adjustments become necessary in order to achieve the 2 percent price stability target, the bank will make them without hesitation. with such monetary policy, we look to overcome deflation at the earliest possible time. thank you. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

the non - banking sector expands, the risks they carry may also change. we should be particularly mindful of the risks in this sector, posed by the decreasing trend of interest rates amid a declining and aging population. if a low interest rate environment persists, investors tend to become more active in searching for higher yields on assets. this leads non - banking investors to make riskier loans and invest in riskier financial products. if such behavior becomes widespread, they could lead to threatening the stability of the financial system. amid the increase in demand for insurance and pension products, financial intermediation by asset management companies has expanded in recent years. this basically diversifies the channels of financial intermediation and facilitates efficient allocation of funds. however, it could also lead to complex changes in the risk propagation process under a stressed financial environment and in responses to emergency situations. for instance, asset management companies tend to adopt similar investment strategies. therefore, their investments may carry the risk of fire sales that could cause asset prices to collapse to levels far below their fundamentals when a negative shock occurs. for the same reason, there is also the risk of drying up of liquidity in the markets. as a result of the financial regulation reforms after the lehman shock, the banking sector has indeed become more resilient in terms of both capital and liquidity. nevertheless, there are several issues that still need to be addressed in order to make the global financial system, including the non - banking sector, more resilient. iv. households'needs for financial services in a low interest rate environment, households also tend to become more active in searching for higher yields on assets, and their engagement in risk taking may affect the financial system in multifaceted ways through diversified financial services. compared with other countries, households in japan have a strong tendency to favor safe assets, and even in a prolonged low interest rate environment, a large proportion of household financial assets continue to be deposits. in japan, however, the elderly hold more stocks than younger people. 4 also, some people seem to begin investing in stocks after retirement. attention needs to be paid to possible changes in household asset allocation as aging continues. another important issue in providing financial services to the elderly is the issue of physical weakening and cognitive decline. in general, the elderly are prone to become more vulnerable to financial fraud, and the number of elderly people having difficulty in accessing financial services and making financial decisions is on an increasing trend. all financial institutions, whether in the