Since the credit crisis many commentators have accused the global banking system of storing up too little risk capital through the good times and then deepening any recession by reining in lending when the crunch comes.

The banking industry and its regulators are trying to hammer out some potentially contentious industry-level solutions to this "procyclical" behavior, such as leverage ratios and cycle-dependent capital multipliers.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.