They need to maintain considerable capital margins over and above the required minimum levels, as well as ample liquidity buffers. One way to achieve this objective is by promoting internal  BIS Review 18/2010  3  financing. Furthermore, in the context of the present situation, banks should give priority to the strengthening of their ability to absorb any unforeseen losses.
The prudent management of their payout and remuneration strategies is, hence, strongly advised. Banks must also persevere in their efforts to further strengthen the risk management culture, methodologies, processes and controls and improve governance. As managing risk is not always straightforward, qualitative analyses are needed to complement quantitative analyses. We can see good steps taken in this direction.