In the future, various factors will tend to increase the average cost of the public debt: the substantial recourse to the market by governments to fund measures for supporting the economy, the recovery of economic activity, and fears of a rise in inflation.
It was only after the recent crisis that the authorities came to realize that network systemic risks expand as interconnectedness among banks intensifies. The addition in Basel III of macroprudential overlays – such as countercyclical capital buffers, forward-looking provisioning, and systemic surcharges for SIFIs – is based on the repentance of the previous microprudential surveillance framework.