Mary Daly, president of the Federal Reserve Bank of San Francisco, said the epidemic would promote long-term reforms in the Treasury market to ensure sufficient liquidity in future crises and make people aware of it.
The scale of the mismatch in the early stages of the crisis was almost unanticipated and the reform process could take years, Daly said at an online Asian banking forum on Wednesday night.
"what can be drawn from this is, what do we need to think about the reform of the government bond market?" Daly says centralized clearing is one of the priority areas. "what do we need to do to make people feel mobile?"
Speaking at the Asian Banking and Finance Symposium hosted by the San Francisco Fed and the Singapore Monetary Authority, Daly also said another priority would be to improve access to dollar borrowing for small businesses.