In order to mitigate the inherent pro-cyclical nature of financial activities, to which I will return later, the Basel Committee’s proposals also contain capital buffers and forward-looking provisioning. Finally, the proposals include global minimum liquidity risk requirements enabling credit institutions to withstand a short-term liquidity stress and aiming to ensure longer-term stability in their funding requirements. The objective of this comprehensive package is to enable financial institutions to better withstand the adverse effects of economic shocks. In order to assess the cumulative impact of the proposals, quantitative impact assessments are underway. The outcome will be available in the coming weeks, and will assist decision-makers in properly calibrating the measures. At this stage, therefore, it is premature for me to say anything about the desirable  2  BIS Review 87/2010  calibration of the measures. Nevertheless, I am of the view that the measures are warranted from a conceptual point of view, though their cumulative impact needs to be carefully assessed. Indeed, it is important that the right balance is struck between enhancing banking stability and maintaining a stable provision of credit to the economy. IV. What has been done? The main strands of the reform agenda I come to paint are at various stages of development. It is therefore useful to briefly run through what has already been achieved, in particular in Europe. Starting with the prudential framework for banks, most FSB members, including the EU Member States, have fully implemented the more risk-sensitive Basel II framework.
John C Williams: A different kind of recession Remarks (via videoconference) by Mr John C Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Institute of International Finance: Central Banking in the Age of COVID-19 Summit, 30 June 2020. * * * As prepared for delivery Thank you for the warm introduction. When the United States entered the pandemic in March, I never expected that three and a half months later I would still be making speeches from my apartment: I look forward to the day when gathering in groups is safe and we can meet in person. We're now 17 weeks into a catastrophic pandemic which has cost over 500,000 lives worldwide and has had a devastating effect on economies across the globe.1 Today I'm going to talk about the current state of the U.S. economy, our goals for the recovery, and how the Federal Reserve is responding to the worst recession in living memory. Before I continue, let me give the usual disclaimer that the views I express are mine alone and do not necessarily reflect those of the Federal Open Market Committee or anyone else in the Federal Reserve System. A Different Kind of Recession The economic effects of the coronavirus have caused great hardship and created enormous uncertainty. The root of this downturn—a global pandemic—means this is a completely different kind of recession compared to anything we've experienced in the past.