The aim is to preserve the bank’s critical functions while avoiding a government bailout or turmoil on the financial markets. GLAC should become to the “gone concern” scenario what the Basel III regime is to the “going concern” scenario. And for both we need internationally binding minimum standards which are mutually compatible.
The Basel III capital standards have already been approved, whereas a minimum standard for GLAC is currently under development. 2  BIS central bankers’ speeches  3  Parallel banking – there is no light without shadow  Ladies and gentlemen, we haven’t yet crossed the finishing line in our quest to solve the “too big to fail” problem.