Even in cases in which cooperation was thought to have produced a good degree of uniformity in regulatory approaches, national needs and practices prevailed. The “too-big-to-fail” syndrome is currently under discussion in international fora, with various proposed remedies, including the imposition of additional capital requirements and other, more radical proposals for reducing the size and interdependence of group structures with global systemic relevance.
That’s an important backstop for the market and that worked effectively at the end of last year.” On the fixed-rate, full-allotment policy: “There is not enough recognition in the market of the power of the fixed-rate full-allotment regime, meaning that the amount of liquidity extension by the central bank, or the size of the balance sheet of the central bank can be X or Y at a point in time, but there is still a lot of flexibility to cope with any liquidity shocks.