To improve the performance of credit rating agencies, which were deeply involved in the collapse of markets for collateralized and securitized lending instruments, especially those based on mortgage finance. More than six years later, policymakers around the globe have made substantial progress in strengthening the financial system and reducing the probability of future financial crises.
Globally, the minimum tier 1 capital ratio has been increased, and a capital conservation buffer has been put in place. In addition, a countercyclical capital buffer has been created that enables regulators to raise risk-based capital requirements when necessary, and a minimum international leverage ratio has been set. Finally, global systemically important banks will face a risk-based capital surcharge based on their systemic risk.