At a time when cyclical pressures have been building and bank profitability has been strong, it might be prudent to ask large banking organizations to fortify their capital buffers, which could subsequently be released if conditions warrant. - 15 References Bank of England (2018). Financial Stability Report. London: BOE, November, https://www.bankofengland.co.uk/-/media/boe/files/financial-stabilityreport/2018/november-2018.pdf. Basel Committee on Banking Supervision (2018). “Countercyclical Capital Buffer (CCyB),” webpage, https://www.bis.org/bcbs/ccyb.
But the evolving global context and rapid technological progress are changing the nature of the risks that we are exposed to. We are seeing an increase in protectionist policies, as sanctions and even exclusion from payment systems in recent years have shown. This presents new risks of payment disruption – especially for jurisdictions that are overdependent on dominant system providers.