An appropriate set of indicators, such as earnings and credit-based variables, will be used as a way to condition the build up and release of capital buffers. 2  BIS Review 104/2009  •  Provisioning requirements on a forward looking basis using the principle of expected losses. •  Recommendations to reduce the systemic risk associated with the resolution of crossborder banks.
•  Assess the need for a capital surcharge to mitigate the risk of systemic banks. In order to ensure transition to a higher level and quality of capital, supervisors will be encouraged to take actions to limit excessive dividend payments, share buybacks and compensation.