In order to make the financial system more resilient to shocks, each individual bank will need to hold a bigger capital buffer than before. This can be achieved through higher overall buffers, increases in capital charges for specific activities, or a combination of the two.
Furthermore, the quality of capital buffers needs consideration to ensure that they can absorb shocks while the bank is still functioning. Banks’ leverage will have to be limited in some shape or form. Banks also have a responsibility to actively manage their own complexity. In this regard, I think a proposal that is rightly being considered is that of “living wills”.