In this context, let me highlight that a wide range of regulatory initiatives are currently being discussed under the aegis of the FSB and the BCBS where concrete results are expected already in the near term.
First, work is ongoing with relation to the prudential treatment of systemically important institutions (SIFI’s) which are expected to have a loss absorbing capacity beyond the Basel standards given the implicit subsidy they get and the enormous costs their potential failure may represent for society.