4  BIS central bankers’ speeches  For global systemically important banks, the higher capital levels approved by the G20 and crisis management measures will strengthen their ability to absorb losses and will limit how far banks are interconnected and the risk of contagion among intermediaries and between finance and the real economy.
On 29 June the Basel Committee began a public consultation on its proposed principles to ensure that domestic systemically important banks too are endowed with a high capacity to absorb losses. Compared with the rules for the global systemically important banks, the national authorities are given more leeway to determine which intermediaries are subject to additional loss absorbency requirements and to calibrate capital requirements.