4  BIS central bankers’ speeches  phase, and avoid regulatory and policy “procyclicality” in the downward direction. Moreover, we should also recognize that a severe balance-sheet adjustment under population ageing hampers the effectiveness of conventional policy tools. 10 In addition, seemingly overly pessimistic expectations aggravate the problem of policy effectiveness.
Within each of these themes there are a number of regulatory initiatives, such as the regulation and resolution of SIFIs under the TBTF problem and Basel III and proposals for a basic capital requirement for insurers to strengthen the theme of building resilient financial institutions. This list, although not exhaustive, suggests the significant scope and amount of the work still ahead.