2 The major regulatory initiative of this period was the Basel II package of changes to capital requirements, an exercise whose shortcomings included an enhancement, rather than diminution, of regulatory incentive for procyclicality in bank lending, and thus could arguably increase systemic risk. 1  For example, the Garn-St. Germain Act of 1982, P.L. 97–320; 96 Stat.
The drop in commodity prices, uncertainty in financial markets, volatile capital flows, subdued external demand and geopolitical influences, coupled with the refugee crisis, have been some of the major headwinds adversely impacting global economic developments. Unfortunately, these factors will continue to have a bearing on the economic outlook for both emerging market economies and the global economy as a whole.