modification details, see federal financial institutions examination council ( 2020 ), “ federal financial institutions examination council issues statement on additional loan accommodations related to covid - 19, ” press release, august 3, https : / / www. ffiec. gov / press / pr080320. htm. see board of governors of the federal reserve system ( 2020 ), “ federal reserve board releases results of stress tests for 2020 and additional sensitivity analyses conducted in light of the coronavirus event, ” press release, june 25, https : / / www. federalreserve. gov / newsevents / pressreleases / bcreg20200625c. htm. - 5ensure resilience of the largest banks, we required them to resubmit their capital plans, imposed limitations on capital distributions, and recently provided new scenarios that will be used for a second round of stress tests later this year. 5 among other actions to support financial intermediaries during the pandemic, in april, the board issued an interim final rule that would exclude, on a temporary basis, u. s. treasury securities and deposits at federal reserve banks from large bank holding companies ’ supplementary leverage ratio. 6 the rule has helped ease strains in the u. s. treasury market and continues to facilitate the significant inflow of customer deposits at banks that has occurred since the onset of the event. looking ahead, in september, the board published an advance notice of proposed rulemaking ( anpr ) that would modernize the community reinvestment act ( cra ) by strengthening, clarifying, and tailoring cra regulations to ensure that they reflect the current banking landscape and better meet the core purpose of the cra, addressing inequities in credit access and ensuring an inclusive financial services industry. 7 the anpr proposes special provisions for minority depository institutions ( mdis ), womenowned financial institutions, low - income credit unions, and community development financial institutions. because of feedback received about lack of awareness of existing for second - round stress - test information, see board of governors of the federal reserve system ( 2020 ), “ federal reserve board releases hypothetical scenarios for second round of bank stress tests, ” press release, september 17, https : / / www. federalreserve. gov / newsevents / pressreleases / bcreg20200917a. htm. for more details regarding the effect on the supplementary leverage ratio,

levels of inflation and openness of their economies coupled with high savings and investment rates contributed to a sustained period of rapid growth, in some cases starting in 1960s and 1970s. by the 1980s most economies in the region were expanding vigorously. foreign net capital inflows grew, but until recent years were relatively modest. the world bank estimates that net inflows of long - term debt, foreign direct investment, and equity purchases to the asia pacific region were only about $ 25 billion in 1990, but exploded to more than $ 110 billion by 1996. a major impetus behind this rapid expansion was the global stock market boom of the 1990s. as that boom progressed, investors in many industrial countries found themselves more heavily concentrated in the recently higher valued securities of companies in the developed world, whose rates of return, in many instances, had fallen to levels perceived as uncompetitive with the earnings potential in emerging economies, especially in asia. the resultant diversification induced a sharp increase in capital flows into those economies. to a large extent, they came from investors in the united states and western europe. a substantial amount came from japan, as well, owing more to a search for higher yields than to rising stock prices and capital gains in that country. the rising yen through mid - 1995 also encouraged a substantial increase in direct investment inflows from japan. in retrospect, it is clear that more investment monies flowed into these economies than could be profitably employed at modest risk. i suspect that it was inevitable in those conditions of low inflation, rapid growth and ample liquidity that much investment moved into the real estate sector, with an emphasis by both the public and private sectors on conspicuous construction projects. this is an experience, of course, not unknown in the united states on occasion. these real estate assets, in turn, ended up as collateral for a significant proportion of the assets of domestic financial systems. in many instances, those financial systems were less than robust, beset with problems of lax lending standards, weak supervisory regimes, and inadequate capital. moreover, in most cases, the currencies of these economies were closely tied to the u. s. dollar, and the dollar ’ s substantial recovery since mid - 1995, especially relative to the yen, made their exports less competitive. in addition, in some cases, the glut of semiconductors in 1996 suppressed export growth, exerting further pressures on highly leveraged businesses. however, overall gdp growth rates generally edged off only slightly,