With a view to strengthening the resilience of the banking sector, the regulatory reform agenda that has been launched and agreed internationally will: •  introduce a leverage ratio, as a measure to curb banks’ excessive balance sheet growth.
This measure will be introduced initially as a supplement to the Basel II riskbased framework and, subject to proper calibration and review, as a minimum regulatory requirement;  •  raise the quality, consistency, transparency and level of capital, namely the amount of common equity and other instruments of equally high loss-absorption capacity;  •  introduce a framework for counter-cyclical capital buffers above the minimum capital requirement, which will be raised during economic upturns and be used in downturns, as well as promote more forward-looking provisions; and  •  establish a minimum global standard for funding liquidity which includes a stressed liquidity coverage ratio requirement and a longer-term structural liquidity ratio.