It is conceivable that if, for instance, the expectation takes hold that interest rates will remain low for a long time regardless of developments in economic activity and prices, there is a medium- to long-term risk of larger swings and an inefficient allocation of resources as firms and financial institutions overextend themselves.
Starting in January 2016, systemically important banks will need to build up additional capital buffers. As from 2019, global systemically important banks will have to maintain sufficient total loss-absorbing capacity, or TLAC, in the form of debt and equity capital, which can be tapped in a resolution or recovery event.