Possible tools include introducing capital and liquidity surcharges, or constraining size or the range of activities, to reduce the externalities of systemically important institutions to the society. 2. The core financial infrastructures and markets need to be strengthened, for example via the promotion of central counterparty clearing and revision of supervisory standards on financial market infrastructures. 3.
We also need to review resolution regimes and bankruptcy laws to ensure an orderly winding-down of systemic cross-border financial institutions. In this respect, the European Commission has already launched a public consultation on measures for a new EU framework for crisis management in the banking sector, in which policy options as regards early intervention, bank resolution and harmonised insolvency procedures are considered.