As I have already noted, the various Basel frameworks have materially strengthened both the quantity and quality of required Tier 1 capital. Now we also need to attend to the characteristics and size of the components of a firm’s balance sheet that would be available to a resolution authority for loss absorption or conversion to equity.
A good starting point will be the idea of using long-term unsecured debt, with appropriately tailored characteristics, as a gone-concern complement to going-concern common equity requirements. BIS central bankers’ speeches  3  A fifth reform is a proposed set of quantitative liquidity requirements.