A delicate moment for supervisors - challenges and priorities in a global pandemic
By Bank for International Settlements (BIS)
Agustín Carstens identifies the Covid-19 pandemic as a "structural break" that tested the limits of the Basel III framework. While banks entered the crisis with stronger capital buffers, supervisors faced the dilemma of balancing microprudential safety (bank solvency) with macroprudential stability (maintaining credit flow).
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