The capital buffers we have asked banks to build up in recent years are now there to absorb those losses. But, of course, that resilience is not unlimited.
Third, the policy actions taken in the area of fiscal and monetary policy – as well as macroprudential and supervisory policy – have been necessary to mitigate the amplification of the immediate shock, enable the financial system to support households and businesses through the crisis, and to minimise the extent of longer-term difficulties.