A secondary objective for using the CCyB is its potential to limit the buildup of financial vulnerabilities by slowing the rate of credit expansion--that is, the possibility that the CCyB may "lean against the wind" of credit fluctuations. This secondary objective, both in the original Basel discussions and in the Federal Reserve's framework, is less central.
13 Korte, J., Catharsis – The Real Effects of Bank Insolvency and Resolution, Deutsche Bundesbank Discussion  Paper 21/2013. 14 De Loecker, J. and J. Eeckhout (2017), The Rise of Market Power and the Macroeconomic Implications, NBER  Working Paper 23687.