Reinforcing the importance of adequate capital, the prompt corrective action provisions required that increasingly strong actions be taken against a depository institution as its capital ratios fell. The banking agencies were required to implement the policy of prompt corrective action no later than mid-December 1992, approximately the same date as for full implementation of the Basel accord.
These include the recent approval to impose counter-cyclical buffers (CCyB) and the approval of the extension of the observation period for the Basel III Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), among others.