The regulation of the financial system is important in order to maintain its stability at both the micro and macro level, and thus the regulation is divided into macroprudential and microprudential regulation. Micro-prudential regulation observes each institution individually and regulates their daily operations, and macroprudential regulation focuses on the interdependence of different financial institutions and markets from the position of the overall financial system. The importance of regulation at the level of the entire financial system also refers to the regulation of its pro-cyclicality. Procyclicality refers to interactions between the financial system and the real economy that mutually reinforce each other. Such interactions tend to amplify business cycle amplitudes, thereby increasing the risk to financial stability. Due to the complexity of pro-cyclicality, there are various factors that contribute to its intensity, and the unquestionability of its impact is visible in the example of the 2008 crisis. Financial sector regulation is one of the more important factors of pro-cyclicality, which highlights the need to revise the current regulatory framework. The main part of the paper highlights the regulatory requirements that contribute to the pro-cyclicality of the financial system. The current accounting treatment of the banking system is stated, with special emphasis on the influence of accounting standards on credit standards.. A detailed overview of the Basel II and Basel III regulatory frameworks is also provided. The differences between these two regulatory frameworks are particularly emphasized, and attention is drawn to the positive changes in Basel III in terms of pro-cyclicality in relation to Basel II. Proposals for reducing the pro-cyclical impact of regulation collected from the relevant literature are offered. Finally, a brief overview of a few empirical studies related to the pro-cyclicality of capital requirements, the pro-cyclicality of loan loss provisions and the effect of capital buffers is given. Specifically, the greater pro-cyclicality of Basel II compared to Basel I is proven, as is the greater pro-cyclicality of loss provisions in euro area countries compared to other countries. The analysis also provides evidence of a positive effect of capital buffers on countercyclicality and the resilience of banks.