In addition to moving ahead aggressively with Basel II, the Committee has issued a proposal to strengthen the capital treatment for risks not captured under Basel II’s existing trading book regime. In this context, the Committee is also carefully considering the topic of procyclicality, especially as it is influenced by bank capital issues.
There are many dimensions here, such  BIS Review 115/2008  3  as the level and quality of capital; provisioning, capital buffers and the ability of banks to dip into those buffers. We will continue to review these and other issues related to procyclicality and are in the process of developing a work programme to address both near term and longer-term issues.