These measures are based on firms’ stock prices, CDS premiums, and stock price volatility, as well as the correlation in asset prices across firms. 2  BIS central bankers’ speeches  required to submit so-called living wills to facilitate their orderly resolution if necessary. Additionally, banks must enhance their reporting systems and improve disclosure.
These new requirements are critical to safeguard the stability of the financial system and to help prevent another costly crisis. At the same time, regulators appreciate that the new rules impose significant burdens on banks.