A variable response

Ensuring banks put in place counter-cyclical capital buffers has become a key area of focus for regulators across the globe, with some proposing capital cushions be based on financial or macro variables. Alessandro Conciarelli and Mario Quagliariello disc

Basel II has been criticised by many observers in the past for being pro-cyclical, but the financial crisis has made this issue a key concern for regulators. In response, bodies such as the Base