The Committee is also conducting a so-called top-down impact assessment, which will complement the bottom-up, firm-specific QIS work. The top-down calibration work will help inform the overall calibration of the capital requirements, minimum and regulatory buffers, factoring in the cumulative impact of the July and December 2009 reform measures and any adjustments to them.
Although the impact differs between the two countries in the short run, the trade friction will equally exert downward pressure on real GDP in both countries by around 0.4 percent in the long run. The right-hand chart shows the impact of the trade friction on the global economy.