BIS calls for countercyclical framework

The Bank for International Settlements (BIS) has called for regulators and central banks to work together to limit procyclicality.

"What seems needed is a new macrofinancial stability framework to resist actively the inherent procyclicality of the financial system," the Annual Report published on Monday says. "By using macroprudential regulatory instruments as well as monetary tightening to lean against the upturn, the worst excesses could be avoided."

The report lists three features of such a