For the supervisors, the lessons are equally numerous. The importance of crisis preparedness, management and resolution, as well as the need for effective cooperation, coordination and risksharing, both at a domestic and external level, has never been more critical if we are to have a more coherent response and recovery approach.
In line with this mandate, the Central Bank recently activated the counter-cyclical capital buffer, which is expressly designed to manage cyclical risks. By requiring additional capital buffers during cyclical upswings, the banking system will be better prepared for future downturns.