2  BIS central bankers’ speeches  Emerging market perspective1 13. The New Normal of Re-regulation broadly reflects the lessons of the recent crisis and is therefore basically oriented towards ensuring financial stability in advanced economies. Even so, EMEs have to implement it. However, its implementation does entail various trade-offs, especially for the EMEs. Capital standards 14.
The Basel III standards for increased bank capital and liquidity will provide a strong anchor for enhancing the resilience of each individual institution to adverse shocks. It forces all lenders, particularly the largest to build up buffers of equity, cash and liquid assets to protect themselves against unexpected losses or another market crisis.