The significant expansion in terms of size and geography it intends to pursue will require careful monitoring of the risks. We are following the implications of these developments closely, in terms of both prudential supervision and payment systems oversight, activating appropriate forms of cooperation with foreign authorities when necessary.
A draft directive for the recovery and resolution of credit institutions has now  BIS central bankers’ speeches  3  been presented at the EU level. This proposal clearly sets forth the sequence of liability for failing financial institutions – shareholders and creditors are now first in line to bear losses, and rightly so.