As new, higher standards come into force, ensuring equivalent implementation will become increasingly important. Three critical areas stand out: Basel III, resolution regimes and central clearing for OTC derivatives. We will need rigorous and effective assessment of implementation across all jurisdictions to ensure that they are living up to their commitments.
The goal is to create a race to the top in national adherence to international standards. Agreement on these three elements – higher standards, new tools and strengthened enforcement mechanisms – will substantially enhance financial stability at the core of the system. Agreement in these areas has been hard. But the truly tough work of consistent, rigorous and relentless implementation is just beginning.