Daníelsson, J. and Á. Jónsson (2005). Countercyclical capital and currency dependence. Journal of Financial Markets, Institutions and Instruments 14(6), 329–348.

The introduction of risk sensitive bank capital charges into currency dependent economies exasperates the inherent procyclicality of banking regulations and frustrates the conduct of monetary policy. By requiring capital charges resulting from foreign currency lending to be denominated in the same foreign currency, the capital charge becomes countercyclical.