Let’s all realise that contingent capital was part of the Basel III communiqué.1 Therefore, the Bundesbank continues to be in favour of including contingent capital in the SIFI package. 3.2  Introducing restructuring and resolution regimes  Closely related to SIFIs is my second issue, namely the need for appropriate restructuring and resolution regimes for the financial sector.
Let’s all realise that we will never fully prevent individual institutions from going bankrupt. Failure is part and parcel of a market economy. But if financial institutions fail they must not be allowed to drag down the entire system with them. Unfortunately, in many countries general insolvency laws have proven inadequate during the crisis.