An important provision relates to the liquidity coverage ratio (LCR), to be implemented in 2013, which requires banks to have sufficient high-quality liquid assets to survive a month-long significant stress scenario.
But now that the recovery is well under way, it is important to concentrate on longer-run fiscal policy. Specifically, it is time to bring the budget deficits under control. Doing so will, of course, require action in the political arena. But the manner in which the process of deficit reduction is framed can strongly influence the likelihood of success.