We are also examining how the regulations might be best applied during liquidity stress events to maximize the benefits for financial stability. Several other possible changes are also under consideration, including altering the LCR so as to limit certain arbitrage opportunities that appear possible from its current structure.
Finally, let me turn to the Basel Committee’s framework for calibrating capital surcharges for banks of global systemic importance. It is informed by the fact that failure of a systemically important firm would have substantially greater negative consequences on the financial system than the failure of other firms, even quite sizeable ones.