Further work is underway to strengthen guidance for and monitoring of liquidity management at large cross-border banks. The FSF and its member bodies also produced a set of recommendations to mitigate procyclicality.
These call for (i) regulatory capital requirements to increase the quality and level of capital in the financial system during strong economic conditions so that they can be drawn down during periods of economic and financial stress; (ii) a revision of the market risk framework of Basel II to reduce the reliance on cyclical Value-at-Risk based capital  2  BIS Review 72/2009  estimates; and (iii) to supplement risk-based capital requirements with a leverage ratio to contain the build up of leverage in the banking system.