14 This change would, of course, apply only to the roughly 30 banks that participate in the supervisory stress test. This buffer would be recalculated after every year’s stress test.
I know that the Chinese authorities that we at the Bank deal with are well aware of the need to create a well-functioning social safety net. Authorities everywhere also need to follow policies that help a country's financial system to work well. This is critical if the financial system is to carry out its vital role of helping to match savings with productive investments.