And the group instructed the Basel Committee to continue working on this issue in 2013. Second, what steps should be taken to enhance the usability of the LCR buffer – that is, to encourage banks to actually draw down their HQLA buffers, as opposed to fire-selling other less liquid assets?
On the one hand, it is important to recognize that, besides causing enormous human tragedy, the hurricanes made the nation economically worse off. Not only did output fall as the result of the storms, but households lost their homes and possessions, businesses were damaged or destroyed, and key infrastructure was wiped out. Initial estimates of losses range anywhere from $ billion to $ billion.