Therefore another important part of the regulatory reform is the need to reduce the moral hazard associated with systemically important financial institutions. It will be key to find ways how SIFIs can internalise the potential costs they pose to the financial system.
This could be achieved by the introduction of additional prudential measures, for instance through capital surcharges or contingent capital instruments, liquidity surcharges, more intrusive supervision, and/or the introduction of bank levies.