I would like to promote a rather pragmatic approach towards solving this problem: We should start with only those institutions that are indisputably of global systemic relevance. I expect this to be a group of some 25 to 30 banks – not more and not less. The composition of this group will surely change over time.
As experience is gained, we might later extend the framework in an appropriate manner to other SIFIs, including financial institutions of domestic relevance, financial market infrastructures, insurance companies and other non-bank financial institutions. Central to the FSB concept are systemic capital surcharges for SIFIs that go well beyond the requirements mandatory under Basel III.