Monitoring cyclicality of Basel II capital requirements

james.benford@bankofengland.co.ukerlend.nier@bankofengland.co.ukFinancial Stability, Bank of England, Threadneedle Street, London, EC2R 8AHThe views expressed in this paper are those of the authors, and are not necessarily those ofthe Bank of England. This paper was finalised on 20 December 2007.© Bank of England 2007ISSN 1754–4262We are very grateful for useful comments and suggestions from Ian Bond, Peter Brierley, Paul Collazos, Glenn Hoggarth, Nigel Jenkinson and Ben Norman at the Bank of England, andTamiko Bayliss at the UK Financial Services Authority.