But particularly important, especially to establish the right set of incentives for SIFIs, is the FSB’s program to set up effective resolution regimes, both at the domestic and cross-border level, to be able to manage in an orderly way the eventual failure of SIFIs.
Only if we succeed to organise a mechanism through which SIFIs are allowed to fail, while limiting to the maximum extent the systemic risk involved, can we ensure that SIFIs behave in a correct manner and thus reduce the probability of future crises.