In this connection, we have seen the build-up, release and subsequent build-up of the countercyclical capital buffer in recent years. The more stringent capital requirements for banks mean that the typical bank's Tier 1 capital ratio has grown from 14 to 21 since the years around the financial crisis - and the increase has been higher for the poorest capitalised banks.
The second pillar concerns sound liquidity management and stable financing. 4/6  BIS - Central bankers' speeches  After the financial crisis, a sensible European framework was established to support the institutions' sound liquidity management combined with contingency measures for use in situations with liquidity difficulties. Given the current market conditions, we should be thankful for this regulation.