Meeting the challenges of innovation and its diffusion as well as ensuring the labour force’s employability and flexibility, requires that human capital is continuously adjusted to labour market needs through improved education and training, as well as lifelong learning. The last decades have already brought about an enormous increase in the level of educational attainment.
The BCBS has proposed that banks be required to build up additional capital buffers at times of rapid credit growth that could then be drawn down in times of stress. The intention of the instrument would be to lessen the impact on the economy when the boom turns to bust as well as possibly constraining excessive credit growth.