They will introduce new instruments and will enhance standardisation of subordinated debt. In combination with new disclosure requirements, these standards will lead to transparent, attractive investment opportunities. But, at the same time, this will also lead to the pricing in of the increased probability of a bail-in – in other words, investors will demand higher risk premiums. 7.
Challenge 3: Learning to live with different market structures  This brings me to my third challenge, namely adapting to new, different market structures. What do I mean by that? Two things: first, market structures are going to be different than before the crisis – in particular less liquid; second, in such a new environment, banks need to adapt their strategies to survive.