For example, requirements to hold sufficient lossabsorbing capital make financial institutions more resilient in the face of unexpected losses. Such requirements take on a macroprudential dimension when they are most stringent for the largest, most systemically important firms, thereby minimizing the risk that losses at such firms will reverberate through the financial system.
I look forward to working with my colleagues and many others to carry out the important mission you have given the Federal Reserve. Thank you. I would be pleased to take your questions. 1  See Board of Governors of the Federal Reserve System (2013), "Federal Reserve Board Proposes Rule to Strengthen Liquidity Positions of Large Financial Institutions," press release, October 24.