Operationalizing it though is a complex task and poses many challenges. 17. The first and foremost challenge is the difficulty of identifying the inflection point in an economic cycle based on objective and observable criteria which would indicate when to begin building up a capital buffer and when to start using it. Second, what economic indicator do we use?
*  *  *  Introduction I would like to thank the organizers for inviting the Bank of Italy to take part in today’s meeting in honour of Professor Giuseppe Muré, a man of great distinction, who combined an academic career with his role as representative of the banking profession, offering a constructive contribution to the complex issues surrounding the business of banking.