##ation, show low cost, while keynesian models, in which slack in the economy is needed to reduce inflation, show high cost. see, for example, sargent ( 1982 ), croushore ( 1992 ), goodfriend and king ( 2005 ), and tetlow ( 2022 ) for a comparison of the cost of disinflation across macroeconomic forecasting models. 3 see the definition for " track " at https : / / www. merriam - webster. com / dictionary / on % 20track. 4 the april 2023 senior loan officer opinion survey on bank lending practices ( sloos ) shows that banks, especially small and midsize banks, reported further tightening in credit standards on loans to businesses and households over the past three months, following widespread tightening in previous quarters. the april 2023 sloos is available on the board's website at https : / / www. federalreserve. gov / data / sloos / sloos - 202304. htm. 5 / 5 bis - central bankers'speeches

##ity requirement will be appropriately attenuated. ensuring the stability of otc derivatives markets that are not centrally cleared : margin requirements for noncleared derivatives while central clearing is important and is expected to increase substantially over time, a significant portion of nonstandardized, bespoke derivatives will never be suitable for central clearing. this bilaterally cleared part of the market was a principal source of systemic risk during the crisis. for noncentrally cleared derivatives, margin requirements will serve as the main tool to mitigate systemic risks. the basel committee on banking supervision ( basel committee ) and the international organization of securities commissions ( iosco ) have recently finalized a framework for margin requirements on noncentrally cleared derivatives that provides for harmonized rules and a level playing field, which is important given the global nature of derivatives markets. regulatory authorities in participating countries are now in the process of developing margin rules for noncleared derivatives in light of the international framework. the framework requires both financial firms and systemically important nonfinancial firms that trade derivatives to collect both variation margin and initial margin, as is the case for centrally cleared derivatives. the initial margin requirements represent a significant change the tier 1 common equity ratio for the 18 largest bank holding companies increased from 5. 9 percent in december of 2007 to 11. 3 percent in september of 2013. for more information, see the fr y - 9c “ consolidated financial statements for holding companies ( pdf ) ” reporting form. see board of governors of the federal reserve system ( 2013 ), “ federal reserve board approves final rule to help ensure banks maintain strong capital positions, ” press release, july 2. see board of governors of the federal reserve system ( 2013 ), “ federal reserve board proposes rule to strengthen liquidity positions of large financial institutions, ” press release, october 24. bis central bankers ’ speeches to existing market practice and will undoubtedly impose some costs on market participants. as originally proposed, the new framework would have required most market participants to collect initial margin from the first dollar of exposure. the international swap dealers association estimated that roughly an additional $ 1. 7 trillion in initial margin would have been required globally. 12 in light of this concern, the framework was released for public consultation on two separate occasions and the basel committee and iosco conducted a detailed impact study to determine the potential liquidity costs of the new requirements. 13 the final version of the framework addressed these concerns by allowing firms to begin collecting initial margin only as potential future credit