The Covid crisis has shown that the reform of international financial regulation in recent years has not corrected the procyclicality of the financial system. On the contrary, this problem has worsened as a result of the new accounting standards. This article explores the reasons for this and possible policy measures to address the problem, including a more rules-based approach to macroprudential policies and a rebalancing between countercyclical and structural buffers in favor of the former.
In February, S&P Global Ratings projected that the total value of outstanding bad debt in the Turkish banking sector will approximately double by the end of the second half of 2020 at the latest.
After a heavy recession brought on by the military conflict with Russia, Ukraine’s economy and banking system now appear to be firmly on the mend. Indeed, things have improved to such an extent that by the end of May, Moody’s had revised its outlook for Ukrainian banking from negative to stable.