Formal decisions have yet to be taken as to the exact application modalities of the SIFI surcharge, especially its size. Nevertheless, I expect that at the end of the day the amount of additional capital required from a SIFI will be related to its systemic importance and will in all likelihood lie somewhere between two and three percent.
What is also still being discussed is the choice of capital instruments acceptable for the surcharge. Common equity surely appears to be the natural choice for the additional charge. But I think other instruments with full loss absorbing capacity deserve careful consideration.