At the same time, the resolution authority in the home country, working with the home country lead supervisor, could begin taking the necessary steps to prepare for a possible resolution as a contingency. If the supervisory intervention does not produce a successful private restructuring and recovery, the home country resolution authority leads a coordinated resolution process. Let me elaborate on a couple points. First, I believe that economists can be invaluable in helping financial supervisory and resolution authorities understand more fully where coordinated actions and cooperative solutions improve outcomes and where they do not, something I don't believe we now really know. The potential gains from cooperation will reflect the distribution of asset and liabilities (or net worth) across legal entities, assumptions about the rate of decay in the values of assets and business lines pre-entry and post-entry into insolvency, the length of time spent in each state and any one-time markdown on entering insolvency. With analysis or simulation, various decision rules can be explored about how a lead resolution authority could foster a cooperative, coordinated resolution using  BIS Review 140/2010  5  tools such as bridge banks, transfers of assets and liabilities, sequencing of sales or liquidations and other techniques. An analysis can also explore how sensitive the decision rules are to timing, distribution of net worth across entities and decay or markdown factors.
If one were to use SARON in such cases, interest payments would theoretically have to be made daily, which is impractical. The NWG has recommended using average SARON values (‘compounding approach’), and has proposed several possible options. Market participants are currently working on implementing this recommendation. Let me conclude this section by emphasising that SARON is establishing itself as the leading reference rate for financial products. It is the responsibility of market participants to systematically complete the remaining transition work and prepare themselves for the postLibor era. As they do so, they can draw on the recommendations of the NWG, whose activities the SNB supports. The faster SARON is integrated into financial products, the smoother the replacement of Libor will be. The creation of a liquid, SARON-based yield curve is fundamental as it will enable our money and capital markets to continue running efficiently. This is very important not only for our country’s financial system but also for the transmission of the SNB’s monetary policy. SNB joins network dedicated to ‘greening the financial system’  To conclude, I would like to say a few words about our decision to join the Central Banks and Supervisors Network for Greening the Financial System (NGFS). As climate change is a global phenomenon, institutional and technical knowledge must be analysed and exchanged globally. The SNB joined the NGFS, which now comprises 36 central banks and supervisors, in April 2019. The network provides a forum in which members can conduct in-depth analysis and seek answers to some key questions.