The SCB Floor Option Returning to our goals of increasing simplicity, mitigating pro-cyclicality, and maintaining the overall level of loss-absorbency in the system, I would like to advance another equally viable alternative to turning on the CCyB: raising the proposed SCB floor from the fixed 2.5 percent of 4/5  BIS central bankers' speeches  risk-weighted assets to a somewhat higher level—purely for the sake of illustration, let’s say 3 percent.
It is the first time I have attended this event, although there are numerous points of contact between securities exchanges and central banks. Central banks and securities exchanges have in common that they provide the economy with an infrastructure which is essential for a well-functioning market economy.