In particular, the G-20 has approved, as a new international standard, the so-called Key Attributes of Effective Resolution Regimes for Financial Institutions, which have to be complied with in each jurisdiction. In Spain, Law 9/2012 adopts and applies many of the principles set forth in the “Key Attributes”. Meanwhile, the European Union expects to adopt the Bank Recovery and Resolution Directive by the end of the year, which will be an important step forward in fully implementing the “Key Attributes” in all Member States. On this last point, as you know Ecofin is currently discussing the Single Resolution Mechanism and the Resolution Fund. It seems that agreements, or draft agreements, are being reached and that progress is being made in the area of resolution, such as the determination of the competent authority. Also, in the more difficult and complicated issue of financing, headway is being made on the characteristics of the proposed Single Resolution Fund. Negotiations are following their course and an extraordinary Ecofin meeting is scheduled for next week to address these matters. Let me now look at the new powers assigned to the Banco de España in the draft bill on credit institution supervision and solvency to be debated shortly. BIS central bankers’ speeches  3  Obviously all the functions and powers conferred on the Banco de España, which I will describe shortly, will have to be interpreted and implemented taking into account the powers of the European Central Bank in the framework of the implementation of the Single Supervisory Mechanism.
We must (according to proposition 96, 1998-99 to the Odelsting) endeavour to promote incentives which enable this approach to be maintained. At the same time, I showed above that risk in the settlement system can and should be further reduced. This raises the question of whether we have had the proper incentives up to now. It will be a challenge to find incentives which accommodate the industry’s need for self-regulation, while leading to a better system - with slightly lower risk. As licensing authority, we must take a stand as to which systems are to fall under the licensing requirement and which will be exempt (because they have no significance for financial stability). There are several issues which will have to be addressed in this area. Turnover and risk exposure in the systems will be key indicators in our evaluations. NICS is obviously a system which will be subject to the licensing requirement, and we will probably have to focus our evaluations on this system initially. We will also have to define which requirements will apply to the interbank systems and, particularly, what actions must be taken for us to fulfil the law’s objective that: Interbank systems shall be organised with a view to promoting financial stability. Special emphasis shall be placed on countering risks resulting from a deficiency in liquidity or financial strength among participants in the system. This must be interpreted to mean that the interbank systems should be organised in such a way that they are robust and can withstand stress.