It is both more sensitive to developments in the global financial cycle and more prone to structural macroeconomic shocks, such as those potentially presented by sudden changes in global integration. A resilient banking system requires sufficient capital buffers to absorb such structural shocks.
This is reflected in our updated strategy for deploying macroprudential capital tools, taking on-board lessons learned during the pandemic on the importance of buffers that are explicitly releasable during times of stress to support bank lending into the economy. [21]  Parting thoughts Countries can boost their resilience while maintaining the benefits of openness.