Here, it may be worth emphasising that the credit cycle does not typically coincide with the business cycle (the fluctuations of which we, at the Riksbank, attempt to dampen with the use of monetary policy), but has a longer course. But once again, the primary purpose of the countercyclical capital buffers is to increase the resilience of the financial system by ensuring that the banks have enough capital in periods when risks are accumulating. Negotiations are underway on the EU level regarding the implementation of Basel III, and thus also the countercyclical buffer. Who will be responsible for the instrument – an existing authority, several authorities together or a newly- formed authority – is an open question in Sweden and many other countries. The Swedish government has appointed a commission to investigate the implementation of countercyclical capital buffers in Sweden. 9 …but the Basel regulations do not capture all risks in Sweden The Basel III Accord will also place requirements on the banks’ leverage ratio, which is the minimum amount of capital that the banks must retain regardless of the risk class of the assets. 10 The fact that a requirement for the leverage ratio sets a ceiling for indebtedness in the banking system is very attractive. It guarantees a kind of minimum level for resilience. At the same time, the banks will no longer have to rely upon the risk weights correctly reflecting the actual risk in lending.
Mohammed Laksaci: Investment financing in Algeria Speech by Dr Mohammed Laksaci, Governor of the Bank of Algeria, at the Japan-Arab Economic Forum, Tokyo, 7–8 December 2009. * 1. *  *  Recent economic and financial developments  The deep and synchronized recession in advanced economies, which resulted from the deepening financial crisis during 2008 and which rapidly spread to many emerging and developing countries, appears to recede. Indeed, the second and third quarters of 2009 recorded the first signs of stabilization and even some signs of improvement in the global financial situation. The massive public interventions in many countries have contributed to reducing systemic risks and uncertainties in the financial markets. However, signs of malfunctioning in the financial sector remain and commercial banks are still dependent on exceptional budgetary support and central banks, in the context of gradual recovery in some advanced countries. Ensuring sustainable growth anchored to financial stability remains a major challenge. The spill over of the impact of the global financial crisis and recession to emerging and developing countries is well established in the first half of 2009, especially in countries affected by sudden capital outflows in the context of high exposure of their banking sector to international financial markets. In response, recovery plans focussed on supporting domestic demand have been implemented in a number of emerging countries, particularly in Asia, thereby contributing to stimulating commodity export recovery in Latin America and the Middle-East.