These will include assessments of firm resolvability. Supervisors will have the power to require changes to a firm’s structure to improve its resolvability. Second, the loss absorption capacity of systemic firms should reflect their role in the global financial system and their potential contribution to systemic risk.
Consumption growth should also contribute to economic expansion, in line with developments in real disposable income, as continued employment growth provides supportive conditions. That said, in view of the potential impact of ongoing financial market volatility and re-pricing of risk on the real economy, the level of uncertainty remains high.