Likewise, authorities can reduce or eliminate the buffer if the vulnerabilities in the financial system have dissipated. In this way, activating the countercyclical capital buffer now should serve as insurance against future financial turbulence. 2.2 Macroeconomic conditions and the timing of macroprudential policy action The word already implies it: when judging whether to activate a countercyclical buffer, the question of timing is vital.
However, during the 2000s, the entire region was much more than the national average. (Pl see Table 2) Banking indicators Number of offices 9. Let us now turn to the role played by the commercial banks as part of the financial system for the progress of the region.