Tag: the Bank of International Settlements

The Financial Regulators across the World will face a dilemma once the withdrawal from Covid-19 measures begins as to how and when to exit from regulatory relief measures in balancing the benefits of economic relief with financial stability considerations. "The challenge will be how and when to exit from regulatory relief measures. In terms of timing, authorities need to steer a course between Scylla and Charybdis. Acting too early may remove much needed credit to support economic growth. Waiting too long may delay necessary resource reallocation and put additional long-run pressure on the financial sector as the solvency phase of the crisis could expose any depletion of loss-absorbing resources, potentially undermining confidence in the post-crisis regulatory regime and its abilit...