Via APRA’s Wayne Byers today:
“In an environment such as this, you want the financial system to be a shock absorber to the broader economy.”
“In 2008, the financial system was at the heart of the crisis, and actually amplifying the crisis through the rest of the economy. What you would hope, by building up the buffers, is they allow the financial system to act as a shock absorber rather than something that amplifies the shock.”
