Advertisement - Continue reading below

Definition of "procyclicality" []

  • The quality of being procyclical. (noun)

Wiktionary.org : Text is available under the Creative Commons Attribution-ShareAlike License

Use "procyclicality" in a sentence
  • "The central bank, in a statement, has asked banks to understand importance of building buffers, such as floating provisions (which are in excess of mandatory requirements) in this regard to mitigate "procyclicality"."
  • "This means identifying, monitoring, and addressing procyclicality and systemic risks generated by the individual and collective behavior of firms."
  • "In addition we agreed to pursue policy measures with respect to haircut-setting and margining practices for securities financing and OTC derivatives transactions that will reduce procyclicality and enhance financial market resilience."