One focus will be on the flexibility incorporated into the prudential standards (concerning for instance the use of bank capital and liquidity buffers); another will be on potential sources of pro-cyclicality, like those stemming from the way rating downgrades are dealt with under existing financial rules and from the accounting standards’ approach to the quantification of expected credit losses.
It will also be important to look at the adequacy of existing crisis management frameworks. Coordination will be required on how to address the financial stability risks arising from a possible wave of corporate insolvencies, as well as on identifying the conditions that must eventually lead to the unwinding of current emergency measures, so as to avoid unintended effects across sectors and jurisdictions.