Most notably, China’s recent decision to enhance the flexibility of its exchange rate is welcome and its full implementation would contribute to strong, sustainable, and balanced global economic growth. European countries have taken measures to consolidate their fiscal positions and have conducted stress tests on their banks.
The oversight board of the Basel Committee has released a broad detailed agreement on new definitions of bank capital and liquidity. With the macro analysis of tightening standards pointing to large net benefits, the calibration of these proposals will be decided shortly.