Regarding fiscal policy, several advanced and emerging countries started to implement countercyclical programs to stimulate the economy and to foster a faster recovery, taking into account that a broad simultaneous stimulus would yield better results relative to unilateral increments in public spending.
We have systematically tightened prudential and risk management standards. This will definitely strengthen the banking system. In the process, risk-based capital requirements based on the Basle framework have stimulated the issuance of tier 2 subordinated debt as part of the recapitalization process. Down the road, as the stock market recovers, banks should be issuing more equity to bolster tier 1 capital.