Moreover, different domestic demand components gained momentum. Investment dynamics benefited from an extended period of favourable financing conditions, balance sheet restructuring, strong corporate earnings and gains in business efficiency. Consumption also strengthened further, in line with the developments in real disposable income, which was increasingly supported by employment growth and improving labour market conditions.
The primary response to the heightened vulnerability of the international banking system has been a concerted strengthening of prudential capital and liquidity standards under the banner  BIS central bankers’ speeches  1  of “Basel III”. The new framework was released by the Basel Committee in late 2010 and is currently being implemented by banking authorities internationally.