As for the former, means must be found to ensure that the capital of financial institutions is built up during cyclical upswings. This would have the dual merit of both restraining excesses during the upswing and providing a cushion to moderate the downturn, when it does eventually materialise.
BIS central bankers’ speeches  3  Longer-term considerations: potential output, productivity, labor market fluidity, and business dynamism I would like to take a step back from the current context and explore an issue that ought to receive more attention – the longer-run potential growth rate of our economy.