We are living in a period of high uncertainty due to a deteriorating economic outlook, inflationary pressures, tighter financing conditions and geopolitical tensions. A resilient financial sector is essential in these times. Thanks to regulatory advances and active use of prudential policies since the global financial crisis, the banking sector is in a good position to withstand economic shocks.
To enhance resilience over the medium term, the focus should remain on improving the effectiveness of the macroprudential toolkit and faithfully implementing Basel III. In the non-bank financial sector, it is imperative to reduce vulnerabilities arising from liquidity mismatch by better aligning redemption terms with asset liquidity.