Hence the focus on two dimensions: -  Loss absorbency: firms need TLAC in the right amount (enough not only to absorb losses but to provide for recapitalisation so firms can continue to meet requirements for authorisation); in the right form (debt with residual maturity of a year and subordinated to operating liabilities to avoid breaches of the ‘no creditor worse off than insolvency’ (NCWO) safeguard or other challenges to the bail-in and at the same time to provide clarity to depositors that they are not likely to be bailed in); and in the right location (ensuring that resources are positioned within a group so that the key operating companies containing a firm’s critical functions can be recapitalised 3  All speeches are available online at www.bankofengland.co.uk/speeches  3  immediately in resolution).As such, international agreement of the FSB’s TLAC standard in 2015 represented a major milestone in moving towards ending TBTF. -  4  Continuity of critical functions: the second main dimension of stabilisation is to ensure continuity in a firm’s operations in resolution. Part of this is legal – changing contractual arrangements so that entry into resolution does not result in widespread, disorderly termination, close-out or acceleration in financial contracts, provision of services or access to financial market infrastructures (FMIs). It is true that under the Key Attributes, resolution regimes include statutory powers to stay. But statutory stays may not be effective cross-border.
Zeti Akhtar Aziz: ASEAN – a dynamic region with diverse strengths Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the International Symposium “Ten Years After the Asian Currency Crisis: Future Challenges for the Asian Economies and Financial Markets”, hosted by the Center for Monetary Cooperation in Asia (CeMCoA), Bank of Japan, Tokyo, 22 January 2007. *  *  *  Ten years after the crisis, ASEAN stands out as a dynamic region with diverse strengths. With a growing population of over 550 million, ASEAN remains one of the fastest growing regions in the world (2005: 5.6%; world: 4.9%). The combined GDP of the ASEAN economies is expected to exceed USD 1 trillion in 2007. This growth has been extensive and includes all the developing economies in the group. The ASEAN economies have always been highly open economies, with total trade accounting for more than 130 percent of GDP and the value of trade flows now exceeding USD 1 trillion. In view of this high degree of openness, ASEAN has also always been vulnerable to external developments. The ASEAN economies have however demonstrated, time and again, their capacity to rebound from adverse shocks, and to do so within a short period of time. While the 1997 – 1998 crisis was devastating, most ASEAN economies were able to restore stability and resume growth just after a year. ASEAN has also continued to weather other both regional and international shocks that have since occurred.