to the usual lags of monetary transmission. the second is that there is a possibility of the recovery taking place in a more dynamic way than currently expected ( if the factors that caused the non - linearity in the downswing work favourably in the upswing as well ). both factors could lead to inflationary risks making a rapid and powerful comeback, and we should all be aware of this. all policy responses, especially the monetary policy actions, cannot – and should not – prevent the necessary adjustment processes in the financial system. above all, the excessive leverage in the financial system needs to be corrected. short - term policy measures should do no more than try to manage this deleveraging - process in an orderly way, that is, it should prevent unnecessary collateral damage to the rest of the economy. moreover, monetary and fiscal policies are unable to provide shelter for the domestic economy against the global symmetric confidence shock that hit the global economy after the collapse of lehman brothers. they can only attempt to dampen some of the second - round effects on the domestic economy by trying to stabilise domestic demand. public finances in germany indeed are contributing noticeably to macroeconomic stabilisation. the german government has implemented discretionary measures in a magnitude of over 2 % of gdp for the years 2009 and 2010. most of the effects of these measures have still come into effect. with regard to fiscal stabilisation it is also necessary to keep in mind that its effects should not only be evaluated by discretionary measures alone. built - in adjustments in public budgets – so - called automatic stabilisers – provide stimulus through a rule - based fiscal framework. these automatic stabilisers are more important in countries with larger social security systems and progressive tax systems. for example, in germany the contribution of automatic stabilisers in 2009 and 2010 will be nearly 3 % of gdp ( including developments in profit - related taxes ). thus, for a thorough assessment of public finances in its stabilisation role the swing in the overall public deficits is the most adequate measure. according to the latest forecast by the european commission – which is plausible in our view – the overall public deficit will deteriorate by 6 % of gdp over 2009 and 2010. this is somewhat less than in the uk, but it makes clear that – contrary to some popular misperceptions – germany ’ s fiscal policy is markedly contributing to stabilising the economy. there is not only a structural adjustment need in the international financial system. in addition

important areas such as marketing, finance and inventory management, and e - commerce should also be continuously strengthened. this will reinforce the assessment by banks and other investors on the long - term growth prospects and competitiveness of the particular business, thus facilitating the provision of finance. it is important to emphasise that the banking industry is in the business of lending. thus, banks will only generate profits if they continue to provide credit. this is a point worth reflecting upon, to avoid misperceptions that banks are intrinsically refusing to lend. if businesses have potential, there should not be any issues in obtaining financing. if any of these issues persist, businesses should seek advice from link at bank negara malaysia. consumer interest groups and business associations also need to be proactive in updating and disseminating information on the availability of financing options such as guarantees, special schemes, and other forms of alternative financing. there are many micro enterprises that still rely on personal loans to finance business operations due to the lack of information and awareness on the existence of such financing options in the market. as a result, these enterprises are required to pay high interest rates to settle personal debts taken, while more cost - effective financing facilities remain underutilised. business associations should strengthen their role by deepening understanding on the underlying causes before raising issues on access to funding. more often than not, the issues raised by business associations are channeled in the form of general complaints that have yet to be studied thoroughly or specifically. this compounds the difficulty of resolving the issues given 2 / 4 bis central bankers'speeches the lack of supporting details. in addition, business associations can act as an important point of reference in advising members on matters concerning efficiency and competitiveness, the use of technology and the adoption of electronic payments to achieve greater security and cost efficiencies. for consumers, priority should be placed on taking charge of their financial futures and ensuring that the financing options available are utilised responsibly. this can be achieved by conducting due diligence and research on the features of a potential financial product, which will lead to better understanding to facilitate informed decision - making. the inability of consumers to meet scheduled loan repayments can result in the bank taking actions to cancel or terminate the loan. therefore, if consumers are faced with financial difficulties, please consult your financial institution immediately in order for alternative repayment arrangements to be discussed. early identification can avoid the instigation of legal action. the bank has established various channels and