I would now like to complement this view with some remarks focusing on the policy dimension of systemic risk. Over the last months, the international community has already decided to improve the regulatory and supervisory framework for the international financial system in several key points.
The recent agreement on tighter capital standards (Basel III) represents a particularly decisive step forward in the envisaged re-form agenda. The new rules will probably be finally ratified at the forthcoming G20 Summit of heads of state and government in Seoul. Bank capital will have to be stronger and higher in future, which will reduce the likelihood of individual institutions failing.