This is a strength of a well-capitalized system, and the use of these buffers to support credit growth would be a positive sign that the recovery is being safeguarded without putting bank solvency at risk. Risks during recuperation I have already mentioned the extraordinary monetary policy actions that the Bank has taken to support the recovery.
Consequences, of laxity in risk management can not be explained more than the recent financial crisis resulting in collapse of Bear Stearns, Indy Mac Bank and Lehman Brothers in the USA.