And clearly, this is a further challenge for integrated performance and risk management which cannot be met overnight. Institutions should therefore be given sufficient time to build up their MREL ratios.
Accordingly, the medium-term perspectives of the global monetary system are likely to be determined by two opposing forces (Bordo and James 2006). On the one hand, reflecting the ideas of the more traditional optimum currency area theory, some observers argue that, with emerging markets’ rapid integration, the global economy will face a growing need for a common monetary standard.