Although in May, when we had data on April inflation, we assumed that inflation would continue up over the following several months, the intensification of geopolitical tensions and worse than expected agrometeorological conditions led to a higher than envisaged rise in food and energy prices over the previous months.
Minimum capital ratios were not high enough and, in meeting even those inadequate requirements, firms were allowed to count liabilities that did not really provide the ability to absorb losses and still maintain the firms as viable, functioning intermediaries. There has already been a substantial response to this challenge.