Several important reforms have increased the loss-absorbing capacity of global banks. First, the quantity and quality of capital required relative to risk-weighted assets have been increased substantially.9 In addition, a simple leverage ratio provides a backstop, reflecting the lesson imparted by past crises that risk weights are imperfect and a minimum amount of equity capital should fund a firm’s total assets.
Finally, taking into account the history of Finland, a small country, so often shaken by the storms of our continent, it is no surprise that Finnish European policies have from the very first day been communityoriented and that it supports strong common institutions. Thank you. 2  BIS Review 83/2006