Many of the new international prudential regulations that were agreed in the wake of the Crisis, such as the enhanced capital levels, the liquidity coverage ratio, and the countercyclical buffer, are now being introduced in steps, and more regulations, such as the leverage ratio, total loss-absorbing capacity (TLAC), and net stable funding ratio (NSFR), are on the way, again in steps.
The procedure should be transparent in order to give the possibility to the general public and to market participants to appreciate the evolution of the process, from the stage at which macroeconomic imbalances are detected and assessed, to the stage at which recommendations for corrective actions are issued. Transparency in this case reinforces – rather than weakens – the teeth of the procedures. 3.