In addition, the weak global demand and the inability of OPEC and its 7|Page  allies to agree on production cuts led to the collapse of oil prices, and further worsened financial market risk sentiments. These developments led to tighter global financing conditions in both advanced and EMDEs. 9. The intensity of the virus and its socio-economic consequences demanded swift and decisive policy reactions.
While the terms of this leverage requirement have been agreed to, there will be a supervisory monitoring period and then a parallel run to assess its impact, particularly in countries with no history of such a requirement, and to provide for adjustments if warranted.