6  BIS central bankers’ speeches  New regulatory framework and pro-cyclicality issues Let me now take up the issue of the new regulatory framework and pro-cyclicality. Indeed, one of the regular agenda items of recent international debates is how to address pro-cyclicality in financial regulation.
The Basel Committee has tried to address this issue in Basel III, which incorporates a “capital conservation buffer” and “counter-cyclical buffer”. Here implementation is the key.