What are the fundamental resolution tools that we must have to confront not only small failures but the possible failures of medium and large banks? What constraints would we face in preserving value if our financial firms become globalized or systemically important? And importantly, for DICGC, what is the optimal role for the deposit insurer in the resolution regime?
The progress that has already been made does not, however, detract from the fact that differences in the legal systems and settlement systems stand in the way of a more far-reaching integration of the bond and equity markets. In comparison with the United States, for example, they give rise to unnecessary transaction costs.