Notwithstanding the above, we believe that since this is a novel macroprudential tool, both in Chile and at a global level, there is a need to continue the process of deepening our understanding of this buffer and its effects on different economic and financial variables, its interaction with monetary policy, on the one hand, as well as coordination and interaction with micro prudential tools and supervision, on the other. In this sense, learning from the experience of other countries, from relevant local and international experts and stakeholders can make a significant contribution to this discussion, which is precisely the purpose of this workshop. The speakers and panelists will be exploring a wide range of topics: (i) The UK experience using stress tests to support countercyclical buffer decisions; (ii) the role of macroprudential policy in the recent Covid-19 pandemic; (iii) the effect of capital-based regulation on banks' pricing policies in other emergent countries, like the Czech Republic; and (iv) how to assess the impact of the macroprudential policies in quantitatively rich macroeconomic models. The workshop will be followed by an invitation-only session with discussions with local and international stakeholders and private sector authorities. Let me finish by thanking you all for taking the time to join us today in this workshop. This tool is crucial to accomplish our mandate of reducing systemic risk in the financial sector. Even though we have made substantial progress implementing the framework around this prudential tool, there is more work to be done.

Rosanna Costa: Macroprudential policy and the countercyclical buffer Opening remarks by Ms Rosanna Costa, Governor of the Central Bank of Chile, at the workshop "Macroprudential policy and the CCyB", Santiago de Chile, 16 December 2022. *** Good morning. I am pleased to welcome everyone to today's workshop on macroprudential policy and the countercyclical buffer. Thank you for being here, participating and lending your attention to this important topic. We have gathered a great lineup of speakers, who will address a range of timely and important issues on the matter. In the aftermath of the global financial crisis, banking regulators agreed on an updated set of banking regulations aimed at improving the resilience of the global financial system, highlighting among them the role of new buffers intended to help banks build sufficient resources in normal times so that in a period of stress they can absorb losses and avoid a disruptive reduction of lending. The buffers have two objectives (Basel Committee, 2020b): first, to ensure that banks absorb losses in times of stress without breaching their minimum requirements; and second, to keep credit flowing to the real economy in a downturn by lending to creditworthy businesses and households. In December 2010, the Basel Committee on Banking Supervision (BCBS) published the Basel III framework with the global regulatory standards on bank capital adequacy and liquidity, including a countercyclical capital buffer (CCyB). Its primary objective would be to protect the banking sector from periods of excessive aggregate credit growth, often associated with the accumulation of systemic risk.