This has always been an option under Basel I and II, and it will remain the case under Basel III. To minimise the transition costs, the Basel III requirements will be phased in gradually from 1 January 2013. This morning I would like to discuss with you the impact of Basel III on financial markets.
Let me say first some words on the setting up of a fiscal backstop to the Single Resolution Fund, the privately financed capitalization tool of the Single Resolution Mechanism (SRM). Such a fiscal backstop is important in order to give solid credibility to the commitment of the SRM to resolve, wind up or reorganize failing banks, quickly and effectively.