To ensure that financial institutions have a better liquidity cushion in future and are less vulnerable even in periods of stress, the firsttime introduction of global liquidity standards has been agreed. The G20, at their meeting in Seoul in November of last year, committed themselves to implementing the new standards.
This wasn’t always the way. But in recent times, businesses have tended to wait until they see evidence of increased demand before they invest in expanding capacity. They are even less likely to invest to expand when there is plenty of spare capacity, a legacy of the crisis.