In doing so, more needs to be done to render the fiscal rules more binding – rules which have too often been stretched and ignored in the past. New agreements, such as  BIS central bankers’ speeches  5  the revised Stability and Growth Pact and the Fiscal Compact, are steps in the right direction in this regard.
Conclusion All the work on resolution, both domestically and internationally, is important and necessary. But we must be realistic about what it can accomplish. In light of what has happened over the past 18 months, it is imperative that governments convince markets that they can and will put large financial firms into a resolution process rather than bail out its creditors and shareholders.