Consequently, these banks enjoy an implicit guarantee which often manifests itself as a competitive advantage in the form of more favourable refinancing conditions. To solve this problem, we need a comprehensive approach which goes beyond the increase in risk buffers recently adopted by the Basel Committee. The G20 has given the Financial Stability Board (FSB) the assignment of finding solutions.
For the upcoming G20 Summit in Seoul, the FSB will present to the heads of state and government recommendations for dealing with SIFIs. I think it is obvious that global SIFIs should be subject to more intensive supervision than ordinary banks. Creating a more robust financial market infrastructure is also a must.