Of the various components that make up the Basel III reform package, few have been more complex or challenging than efforts to mitigate pro-cyclicality. With the reforms due to be finalised by the end of the year, few regulators or bankers have the confidence to assert that the approach adopted by the Basel Committee on Banking Supervision will genuinely succeed in reducing the cyclicality of the framework.
The stakes couldn't be much higher. In the wake of the crisis, pro-cyclicality was identi
The week on Risk.net, July 14–20, 2017Receive this by email