We are on the right track with regard to dealing with the systemic importance of banks, but the finish line is still a long way off. The new international agreements on resolution regimes developed by the Financial Stability Board (FSB) are a crucial step.
Applying them globally will make the orderly resolution of a big bank a more realistic option and thus also a more credible threat. Intensive work is being carried out at the European level on the implementation of these principles. Negotiations on the European Recovery and Resolution Directive are scheduled for completion by the end of this year.