We are now evaluating approaches under three headings, while recognising that there will be no silver bullet or a one-size-fits all solution in this area: –  First, reducing the probability and impact of failure of a systemically important institution. The aim is to link capital and liquidity charges more closely to the externality or spill-over costs of failure.
Here, we will be investigating a capital surcharge for systemic importance, as well as what role new capital instruments, such as contingent capital, or other insurance schemes could play. We will also consider options to incentivise structures and business models that support effective supervision.