Meanwhile, with respect to domestic demand, business fixed investment is expected to follow a downward trend judged not only from the continuous decline in corporate profits, but also from the successive downward revisions of firms’ investment plans in the IT-related sector. Private consumption is likely to weaken gradually along with the deteriorating employment and income conditions.
It will also serve as an additional safeguard against attempts to “game” the risk-based requirements and it will help address model risk. A minimum leverage ratio of 3% will be tested during an observation period. BIS Review 171/2010  3  14. The proposed liquidity framework will also have a profound effect since a global liquidity standard does not currently exist.