*  *  *  It is a great pleasure for me to have the opportunity to present this year’s Convergence Report, prepared by the European Central Bank (ECB), to your Committee.
But neither in the United States nor the European Union do the GSIB capital surcharges imposed at the consolidated level apply to foreign banking operations in their jurisdictions. 7 So even if the global bank has local capital requirements for most or all of its foreign operations, the parent still has some flexibility as to where the additional capital buffer can be maintained.