But equally important would be to recreate an environment where banks during this current transitional period were both able and willing to use their buffers to lend, and capital markets were able and willing to fulfil their functions.
For this to happen, the uncertainties about risk exposures and asset valuations, about developments in the real economy, about the strength of financial, corporate and household balance sheets need to be adequately addressed. This implies a central role for improved transparency as well as action by the private sector to repair balance sheets and strengthen the functioning of markets. BIS Review 102/2008  5