One piece of unfinished business on the international capital regulatory agenda arises from the agreement by the GHOS in September that systemically important financial institutions should have loss absorbing capacity beyond the Basel III requirements. This international position parallels the Dodd-Frank requirement that the Federal Reserve apply capital requirements to large, interconnected financial institutions that are more stringent than those applied to other banks.
The financial crisis has changed neither our strategy, nor our objective. The ECB’s response to the crisis has always been in line with both our strategy and our medium-term objective of price stability. But we did broaden the range of our tools to adapt monetary policy to the challenges of the crisis.