in terms it involves introducing measures which contribute to the greater financial of the banking and to reducing the probability of another crisis forcusing following fivea
In concrete terms, it involves introducing measures which should contribute to the greater financial stability of the banking sector, and to reducing the probability of another crisis, focusing on the following five areas: the quality of capital (increasing the quality of bank capital is undoubtedly desirable), stricter liquidity standards (the liquidity risk was shown to be significant during the crisis), countercyclical measures (the creation of additional banking capital in good times should limit excessive credit growth and consequent creation of price bubbles, such as, for example, in Spain), the introduction of a leverage ratio (this new indicator should contribute to the greater stability of banks, but it should include not only financial items contained in the bank's balance sheet, but also off-balance sheet items, such as derivatives and the contingent liabilities of the bank) and, last but not least, the creation of a central counterparty for the settlement of OTC transactions, particularly in relation to greater transparency in derivatives.
In terms, it involves introducing measures which contribute to the greater financial of the banking and to reducing the probability of another crisis, focusing following five areas: the quality of capital (increasing the quality bank capital undoubtedly desirable), stricter liquidity standards (the liquidity risk was shown to be significant during the crisis), measures (the creation of additional banking capital in good times should limit credit growth and consequent of price bubbles, such as, for Spain), the introduction leverage ratio (this new should contribute the of banks, but it should not only financial contained in the balance also off-balance sheet items, such as and the liabilities of the bank) and, last but not the creation of a central counterparty settlement OTC transactions, particularly in relation to greater transparency in derivatives.