But let us begin by taking a look at the envisaged reforms before tackling the question of how they might influence the real economy. 2. The reform of financial regulation …  2.1  Towards more stable banks: Basel III  The natural starting point for a reform of financial regulation is the individual bank.
Macroprudential space The experience of the initial phase of the pandemic illustrated the importance of having sufficient releasable capital buffers in the banking sector. When the pandemic struck in early 2020, macroprudential authorities in the euro area had little room for manoeuvre to release macroprudential capital buffers.