active, mainly by having greater room to liberate this capital [UNK] during a crisis that was unrelated to a credit boom. mounting empirical evidence shows that the release of capital [UNK] worked as it supported the provision of credit. this pandemic - driven experience with the usability of releasable capital [UNK] has sparked an ongoing debate regarding the objectives and optimal implementation of tools like the ccyb. there is still heterogeneity in the implementation of ccyb around the globe. some the term " macro - prudential " : origins and evolution - bis quarterly review, part 6, march 2010 jurisdictions maintain it as originally intended, as a macro - prudential tool linked to the ﬁnancial cycle. others have added a resilience - focused approach, informed by its use during the pandemic. additionally, more recently some jurisdictions followed an approach where the tool is applied considering a positive cycle - neutral rate, that results in a capital [UNK] that is available most of the time. some of these countries left room for a more dynamic application of ccyb over a neutral rate linked to the ﬁnancial cycle. in chile, we have also moved towards the full implementation of the basel iii standards, through the 2019 amendment to the general banking act, which introduced legal provisions aligned with the basel standards for the chilean banking industry and allowed a degree of ﬂexibility so that, through regulations, the banking supervisor — in coordination with the central bank — could implement the regulatory standards in force at the international level. currently, the near completion of the process of implementing these standards in chile and a broad number of jurisdictions, has not only strengthened the micro - prudential requirements to boost individual bank solvency, but has also provided central banks and supervisors with additional macro - prudential tools, like the capital [UNK] ( capital conservation and countercyclical capital [UNK], ccob and ccyb, respectively ), to enhance the resilience of the ﬁnancial system, to help contain the buildup of systemic risks and address structural vulnerabilities within the ﬁnancial system 5 /. however, having access to a tool and implementing it [UNK] are two [UNK] things. while the powers and possibility of use of a macro - prudential or micro - prudential tool may be available, their [UNK] application requires a deep understanding of the objectives and their impact, as well as proper coordination with other active measures. depending on the ﬁnancial regulatory architecture

generally denoting a systemic orientation of ﬁnancial regulation and supervision linked to the macroeconomy. the objective of these earlier macro - prudential policies aimed initially at achieving ﬁnancial stability through smoother economic and ﬁnancial cycles 2. under that premise, several jurisdictions3 started implementing tools like loan - to - value ratios, margin requirements and dynamic provisions. ecb. financial stability review. may 2014 “ the distinction between the micro - and macro - prudential dimensions of financial stability is best drawn in terms of the objective of the tasks and the conception of the mechanisms influencing economic outcomes. it has less to do with the instruments used in the pursuit of those objectives. ” the term " macro - prudential " : origins and evolution - bis quarterly review, part 6, march 2010. notably the usa and europe. macro - prudential regulation : history, theory and policy ( bis. org ) however, it was not until the aftermath of the 2008 global ﬁnancial crisis that international organizations and regulatory bodies began to decisively develop, adopt, and implement macro - prudential policies aimed at mitigating systemic risks that can accumulate over time. this shift was informed by the crisis, which showed that, while traditional micro - prudential approaches are essential, keeping individual ﬁnancial institutions sound is not enough to protect against unchecked system - wide risks and safeguard from systemic crises. therefore, policymakers need a broader approach and a toolkit to safeguard the ﬁnancial system as a whole. the basel iii framework, as introduced by the basel committee on banking supervision ( bcbs ), is a critical step in this direction, providing regulators with tools such as the countercyclical capital [UNK] ( ccyb ) and liquidity coverage ratios that aim to enhance ﬁnancial system resilience during times of stress. the introduction of the ccyb incorporates for the ﬁrst time a macro - prudential tool within the basel standards, aimed at strengthening the resilience and ability of the ﬁnancial system to withstand shocks and to continue providing ﬁnancial services, without amplifying the original shock. in this context, basel iii “ directly addressed ” the risks associated with the “ procyclicality ” of the ﬁnancial system 4. the recent experience with the covid - 19 pandemic, showed that countries where ccyb was activated and accumulated, had some advantages over others where the [UNK] was not