1 00:00:00,734 --> 00:00:02,534 Welcome to Google. I’m Nicholas 2 00:00:02,534 --> 00:00:04,433 Welcome to Google. I’m Nicholas Vira Senior fellow here also at 3 00:00:04,433 --> 00:00:05,802 Vira Senior fellow here also at the Peterson Institute and it’s 4 00:00:05,802 --> 00:00:08,401 the Peterson Institute and it’s my pleasure to open the 5 00:00:08,401 --> 00:00:10,368 my pleasure to open the session, which is devoted to 6 00:00:10,368 --> 00:00:12,667 session, which is devoted to the work of the financial 7 00:00:12,667 --> 00:00:15,634 the work of the financial Stability Board on so called 8 00:00:15,634 --> 00:00:18,602 Stability Board on so called twoB to reforms reforms to end 9 00:00:18,602 --> 00:00:20,602 twoB to reforms reforms to end to big to fail and to promote 10 00:00:20,602 --> 00:00:24,767 to big to fail and to promote to be to fail. and of course, 11 00:00:24,767 --> 00:00:27,400 to be to fail. and of course, to to prompt for this session 12 00:00:27,400 --> 00:00:28,967 to to prompt for this session is a report. a consultation 13 00:00:28,967 --> 00:00:30,334 is a report. a consultation report that the financial 14 00:00:30,334 --> 00:00:32,068 report that the financial stability Board the FSB has 15 00:00:32,068 --> 00:00:35,934 stability Board the FSB has published on. 28, which is a 16 00:00:35,934 --> 00:00:40,268 published on. 28, which is a kind of evaluation after a few 17 00:00:40,268 --> 00:00:43,533 kind of evaluation after a few years of those so called to be 18 00:00:43,533 --> 00:00:46,900 years of those so called to be to form. So it’s my delight to 19 00:00:46,900 --> 00:00:48,267 to form. So it’s my delight to welcome forces discussion 20 00:00:48,267 --> 00:00:50,168 welcome forces discussion Claudia Booth she’s well known 21 00:00:50,168 --> 00:00:51,734 Claudia Booth she’s well known to the surgeons as deputy 22 00:00:51,734 --> 00:00:53,234 to the surgeons as deputy President of Saunders Bank of 23 00:00:53,234 --> 00:00:55,200 President of Saunders Bank of positions that she’s had since 24 00:00:55,200 --> 00:00:57,200 positions that she’s had since 2014. She has a very 25 00:00:57,200 --> 00:00:59,034 2014. She has a very distinguished academic career. 26 00:00:59,034 --> 00:01:00,499 distinguished academic career. She worked at the key Forces 27 00:01:00,499 --> 00:01:01,967 She worked at the key Forces Institute of the world economy 28 00:01:01,967 --> 00:01:06,901 Institute of the world economy the universities of tub. Mike 29 00:01:06,901 --> 00:01:08,934 the universities of tub. Mike Deborah Institute for Research 30 00:01:08,934 --> 00:01:12,767 Deborah Institute for Research in I W H. and she’s been the 31 00:01:12,767 --> 00:01:15,001 in I W H. and she’s been the leader of this financial 32 00:01:15,001 --> 00:01:17,334 leader of this financial stability Board work on to be 33 00:01:17,334 --> 00:01:19,001 stability Board work on to be to reform so she will present a 34 00:01:19,001 --> 00:01:22,201 to reform so she will present a report and also the process of 35 00:01:22,201 --> 00:01:24,033 report and also the process of the consultation and to discuss 36 00:01:24,033 --> 00:01:28,234 the consultation and to discuss that we also have we’re very 37 00:01:28,234 --> 00:01:31,934 that we also have we’re very grateful to have a sound of of 38 00:01:31,934 --> 00:01:33,734 grateful to have a sound of of S and P global as it’s now 39 00:01:33,734 --> 00:01:37,002 S and P global as it’s now called formerly standard than 40 00:01:37,002 --> 00:01:37,699 called formerly standard than fours. I should, of course 41 00:01:37,699 --> 00:01:38,267 fours. I should, of course mention. Here is that it’s 42 00:01:38,267 --> 00:01:40,167 mention. Here is that it’s we’re also grateful at Google 43 00:01:40,167 --> 00:01:43,834 we’re also grateful at Google for SMP’s financial support of 44 00:01:43,834 --> 00:01:45,468 for SMP’s financial support of Google, which is a public 45 00:01:45,468 --> 00:01:49,967 Google, which is a public matter Alex has been at the SNP 46 00:01:49,967 --> 00:01:52,500 matter Alex has been at the SNP Google since I think 2009 and 47 00:01:52,500 --> 00:01:53,700 Google since I think 2009 and before that he was into 48 00:01:53,700 --> 00:01:55,966 before that he was into financial industry that you had 49 00:01:55,966 --> 00:01:58,434 financial industry that you had it and he’s now global head of 50 00:01:58,434 --> 00:02:00,733 it and he’s now global head of banking analytics and research 51 00:02:00,733 --> 00:02:02,900 banking analytics and research for S and P global, which means 52 00:02:02,900 --> 00:02:05,568 for S and P global, which means really a kind of global guru 53 00:02:05,568 --> 00:02:08,068 really a kind of global guru for all things banking in 54 00:02:08,068 --> 00:02:08,533 for all things banking in terms. Analysis and to be to 55 00:02:08,533 --> 00:02:09,233 terms. Analysis and to be to fail of course, being very 56 00:02:09,233 --> 00:02:09,967 fail of course, being very relevant to ratings because if 57 00:02:09,967 --> 00:02:10,434 relevant to ratings because if banks are too big to fail, it 58 00:02:10,434 --> 00:02:11,433 banks are too big to fail, it should be very good credit and 59 00:02:11,433 --> 00:02:12,733 should be very good credit and actually there’s a section on 60 00:02:12,733 --> 00:02:14,801 actually there’s a section on the opinion of the rating 61 00:02:14,801 --> 00:02:16,100 the opinion of the rating agencies on the reforms are the 62 00:02:16,100 --> 00:02:17,734 agencies on the reforms are the report itself. so that’s 63 00:02:17,734 --> 00:02:20,100 report itself. so that’s probably enough from me by way 64 00:02:20,100 --> 00:02:24,401 probably enough from me by way of introduction. I suggest we 65 00:02:24,401 --> 00:02:26,667 of introduction. I suggest we first hear from Claudia on as 66 00:02:26,667 --> 00:02:29,068 first hear from Claudia on as the report itself and then from 67 00:02:29,068 --> 00:02:30,499 the report itself and then from Alex and that will be the usual 68 00:02:30,499 --> 00:02:33,801 Alex and that will be the usual free for all. Of you who are 69 00:02:33,801 --> 00:02:35,168 free for all. Of you who are familiar with our platform, you 70 00:02:35,168 --> 00:02:37,701 familiar with our platform, you knows that questions are to be 71 00:02:37,701 --> 00:02:40,234 knows that questions are to be asked on to the platform. SLI 72 00:02:40,234 --> 00:02:42,234 asked on to the platform. SLI Dot DO there’s a code to enter 73 00:02:42,234 --> 00:02:45,868 Dot DO there’s a code to enter so hashtag TBT s quite simply 74 00:02:45,868 --> 00:02:49,701 so hashtag TBT s quite simply tap the letters no matter and 75 00:02:49,701 --> 00:02:51,234 tap the letters no matter and once you’re on the page of 76 00:02:51,234 --> 00:02:53,202 once you’re on the page of door, you can ask questions and 77 00:02:53,202 --> 00:02:55,366 door, you can ask questions and I will answer them and relay 78 00:02:55,366 --> 00:02:58,167 I will answer them and relay them as to the best of my 79 00:02:58,167 --> 00:03:00,334 them as to the best of my ability to the participants So 80 00:03:00,334 --> 00:03:03,101 ability to the participants So now for you we want. About the 81 00:03:03,101 --> 00:03:04,735 now for you we want. About the report and please share your 82 00:03:04,735 --> 00:03:07,201 report and please share your screen so that you can you can 83 00:03:07,201 --> 00:03:08,801 screen so that you can you can see your sides. Yes. Thank you 84 00:03:08,801 --> 00:03:10,000 see your sides. Yes. Thank you very much. Nicola Thank you 85 00:03:10,000 --> 00:03:13,067 very much. Nicola Thank you very much for for for having me 86 00:03:13,067 --> 00:03:14,399 very much for for for having me here and what the means because 87 00:03:14,399 --> 00:03:16,000 here and what the means because we all in different places that 88 00:03:16,000 --> 00:03:18,401 we all in different places that he had this virtual room. So 89 00:03:18,401 --> 00:03:22,134 he had this virtual room. So let me share my screen because 90 00:03:22,134 --> 00:03:24,734 let me share my screen because I just wanna show you a few 91 00:03:24,734 --> 00:03:28,934 I just wanna show you a few slides from the a few graphs 92 00:03:28,934 --> 00:03:31,167 slides from the a few graphs and data from the consultation 93 00:03:31,167 --> 00:03:31,934 and data from the consultation report and has now been 94 00:03:31,934 --> 00:03:34,301 report and has now been published I apologize up front. 95 00:03:34,301 --> 00:03:35,700 published I apologize up front. Get background noise there’s 96 00:03:35,700 --> 00:03:36,934 Get background noise there’s construction work going on 97 00:03:36,934 --> 00:03:38,634 construction work going on right outside my window. So 98 00:03:38,634 --> 00:03:39,699 right outside my window. So maybe this makes you hopeful 99 00:03:39,699 --> 00:03:43,766 maybe this makes you hopeful that the economy is back on on 100 00:03:43,766 --> 00:03:46,534 that the economy is back on on track but. we interrupt this 101 00:03:46,534 --> 00:03:47,834 track but. we interrupt this year a little bit or to help 102 00:03:47,834 --> 00:03:51,100 year a little bit or to help not too much. Yeah. So like 103 00:03:51,100 --> 00:03:52,000 not too much. Yeah. So like Nicholas really what I’m 104 00:03:52,000 --> 00:03:54,401 Nicholas really what I’m talking about here is not my 105 00:03:54,401 --> 00:03:55,867 talking about here is not my own work so I try to do the 106 00:03:55,867 --> 00:03:58,600 own work so I try to do the work as good as I could but 107 00:03:58,600 --> 00:03:59,968 work as good as I could but it’s really to join the effort 108 00:03:59,968 --> 00:04:03,334 it’s really to join the effort for it of a large group of very 109 00:04:03,334 --> 00:04:04,767 for it of a large group of very knowledgeable people from the 110 00:04:04,767 --> 00:04:06,334 knowledgeable people from the FSB membership. So this was 111 00:04:06,334 --> 00:04:11,067 FSB membership. So this was open for all its members to. 112 00:04:40,834 --> 00:04:43,100 Summer vacation there’s along 113 00:04:43,100 --> 00:04:44,867 Summer vacation there’s along so technical appendix, which is 114 00:04:44,867 --> 00:04:47,433 so technical appendix, which is all the details so what did we 115 00:04:47,433 --> 00:04:50,667 all the details so what did we do as you know the to favorite 116 00:04:50,667 --> 00:04:52,600 do as you know the to favorite forms really the objective to 117 00:04:52,600 --> 00:04:54,401 forms really the objective to mitigate more and more, and it 118 00:04:54,401 --> 00:04:56,333 mitigate more and more, and it has a systemic risk in the 119 00:04:56,333 --> 00:04:58,167 has a systemic risk in the financial system to put into 120 00:04:58,167 --> 00:05:00,900 financial system to put into place a framework and also for 121 00:05:00,900 --> 00:05:02,267 place a framework and also for the resolution of financial 122 00:05:02,267 --> 00:05:04,100 the resolution of financial institutions. something we 123 00:05:04,100 --> 00:05:05,068 institutions. something we didn’t really have prior to the 124 00:05:05,068 --> 00:05:06,534 didn’t really have prior to the to the crisis. So there’s a 125 00:05:06,534 --> 00:05:08,934 to the crisis. So there’s a very novel element in here in 126 00:05:08,934 --> 00:05:11,068 very novel element in here in terms of institutional the 127 00:05:11,068 --> 00:05:14,234 terms of institutional the design. And to the the banks 128 00:05:14,234 --> 00:05:15,968 design. And to the the banks that we’re looking at here at 129 00:05:15,968 --> 00:05:17,234 that we’re looking at here at the global systemically 130 00:05:17,234 --> 00:05:18,167 the global systemically important banks and the 131 00:05:18,167 --> 00:05:19,433 important banks and the domestically systemically 132 00:05:19,433 --> 00:05:21,202 domestically systemically important banks have to have 133 00:05:21,202 --> 00:05:23,533 important banks have to have higher capital requirements of 134 00:05:23,533 --> 00:05:27,468 higher capital requirements of the surge charges and they’re 135 00:05:27,468 --> 00:05:28,000 the surge charges and they’re also subject to enhance 136 00:05:28,000 --> 00:05:29,266 also subject to enhance supervision. so there’s a whole 137 00:05:29,266 --> 00:05:30,801 supervision. so there’s a whole package of reforms that I 138 00:05:30,801 --> 00:05:32,634 package of reforms that I should say that we focus only 139 00:05:32,634 --> 00:05:34,668 should say that we focus only quote unquote of the too big to 140 00:05:34,668 --> 00:05:35,868 quote unquote of the too big to favorite from a lot of other 141 00:05:35,868 --> 00:05:37,268 favorite from a lot of other things happened, which is also 142 00:05:37,268 --> 00:05:39,334 things happened, which is also making identification of the 143 00:05:39,334 --> 00:05:40,267 making identification of the effects of course a bit more 144 00:05:40,267 --> 00:05:42,801 effects of course a bit more difficult. one of the problems 145 00:05:42,801 --> 00:05:44,667 difficult. one of the problems I think that we all face when 146 00:05:44,667 --> 00:05:46,900 I think that we all face when we want to evaluate the effects 147 00:05:46,900 --> 00:05:50,267 we want to evaluate the effects of policies is that to the core 148 00:05:50,267 --> 00:05:52,768 of policies is that to the core objectives mainly more has a 149 00:05:52,768 --> 00:05:53,734 objectives mainly more has a systemic risk. These are things 150 00:05:53,734 --> 00:05:55,700 systemic risk. These are things we can’t observe so we need 151 00:05:55,700 --> 00:05:57,468 we can’t observe so we need indicators. We need to look at 152 00:05:57,468 --> 00:05:58,934 indicators. We need to look at mechanism mechanisms and this 153 00:05:58,934 --> 00:06:01,734 mechanism mechanisms and this slide summarizes the mechanisms 154 00:06:01,734 --> 00:06:02,801 slide summarizes the mechanisms we’ve been looking at so we’ve 155 00:06:02,801 --> 00:06:06,367 we’ve been looking at so we’ve focused a lot on Bank behavior, 156 00:06:06,367 --> 00:06:07,967 focused a lot on Bank behavior, so we’ve looked at be in shape. 157 00:06:07,967 --> 00:06:09,334 so we’ve looked at be in shape. What do they do how they 158 00:06:09,334 --> 00:06:10,934 What do they do how they capitalize and how do these 159 00:06:10,934 --> 00:06:14,401 capitalize and how do these choice? Texas Then the opposite 160 00:06:14,401 --> 00:06:16,000 choice? Texas Then the opposite has implications for the 161 00:06:16,000 --> 00:06:17,168 has implications for the probability of crisis that 162 00:06:17,168 --> 00:06:18,667 probability of crisis that shortfall in the crisis things 163 00:06:18,667 --> 00:06:22,967 shortfall in the crisis things we also try to estimate. all 164 00:06:22,967 --> 00:06:24,267 we also try to estimate. all this then has implications for 165 00:06:24,267 --> 00:06:25,734 this then has implications for the choices of government. so 166 00:06:25,734 --> 00:06:27,968 the choices of government. so if there’s high risk of a shock 167 00:06:27,968 --> 00:06:30,401 if there’s high risk of a shock hits then banks may fail or 168 00:06:30,401 --> 00:06:31,700 hits then banks may fail or maybe close to failure of 169 00:06:31,700 --> 00:06:32,801 maybe close to failure of governments have to choose 170 00:06:32,801 --> 00:06:34,668 governments have to choose whether they want to bathe them 171 00:06:34,668 --> 00:06:37,000 whether they want to bathe them out. That was very often the 172 00:06:37,000 --> 00:06:38,534 out. That was very often the choice taking in the financial 173 00:06:38,534 --> 00:06:40,534 choice taking in the financial crisis or whether there’s 174 00:06:40,534 --> 00:06:42,867 crisis or whether there’s instruments. Sufficient in 175 00:06:42,867 --> 00:06:46,634 instruments. Sufficient in capital to make a resolution of 176 00:06:46,634 --> 00:06:49,467 capital to make a resolution of piece of it then has 177 00:06:49,467 --> 00:06:50,667 piece of it then has implications for for markets so 178 00:06:50,667 --> 00:06:52,500 implications for for markets so how they perceive the 179 00:06:52,500 --> 00:06:54,200 how they perceive the likelihood of government 180 00:06:54,200 --> 00:06:56,667 likelihood of government support, which leads to an 181 00:06:56,667 --> 00:06:59,968 support, which leads to an implicit fund. 182 00:07:19,400 --> 00:07:21,968 Of reach beyond borders and and 183 00:07:21,968 --> 00:07:23,834 Of reach beyond borders and and the macroeconomic sorry for 184 00:07:23,834 --> 00:07:25,634 the macroeconomic sorry for interrupting, but we lost two 185 00:07:25,634 --> 00:07:28,701 interrupting, but we lost two for about 20 seconds. Oh okay. 186 00:07:28,701 --> 00:07:31,234 for about 20 seconds. Oh okay. I and I’m back now. Yes, you’re 187 00:07:31,234 --> 00:07:32,934 I and I’m back now. Yes, you’re back. Okay. Sorry I didn’t 188 00:07:32,934 --> 00:07:35,267 back. Okay. Sorry I didn’t notice. I thought I had had a 189 00:07:35,267 --> 00:07:36,801 notice. I thought I had had a Coke connection so feel free to 190 00:07:36,801 --> 00:07:39,267 Coke connection so feel free to drop me again. So I’m not sure 191 00:07:39,267 --> 00:07:40,134 drop me again. So I’m not sure how much that I mean you can 192 00:07:40,134 --> 00:07:41,968 how much that I mean you can you can see the chart here. I 193 00:07:41,968 --> 00:07:43,734 you can see the chart here. I was just trying to explain the 194 00:07:43,734 --> 00:07:44,801 was just trying to explain the interaction between what banks 195 00:07:44,801 --> 00:07:46,268 interaction between what banks governments markets are doing 196 00:07:46,268 --> 00:07:47,566 governments markets are doing well. I come back to as I go 197 00:07:47,566 --> 00:07:51,334 well. I come back to as I go through the the presentation 198 00:07:51,334 --> 00:07:53,202 through the the presentation Okay. So what are our key 199 00:07:53,202 --> 00:07:55,299 Okay. So what are our key findings and obviously, as I 200 00:07:55,299 --> 00:07:56,934 findings and obviously, as I said, there’s a lot of evidence 201 00:07:56,934 --> 00:07:58,934 said, there’s a lot of evidence in this report from previous 202 00:07:58,934 --> 00:08:01,201 in this report from previous literature from what we did and 203 00:08:01,201 --> 00:08:02,734 literature from what we did and these are just really key 204 00:08:02,734 --> 00:08:04,402 these are just really key headlines summarizing it so the 205 00:08:04,402 --> 00:08:06,434 headlines summarizing it so the first is that actually the 206 00:08:06,434 --> 00:08:08,401 first is that actually the indicators of systemic risk of 207 00:08:08,401 --> 00:08:09,900 indicators of systemic risk of has that we’ve been looking at 208 00:08:09,900 --> 00:08:11,168 has that we’ve been looking at or moving into the right 209 00:08:11,168 --> 00:08:14,967 or moving into the right direction. We also see that 210 00:08:14,967 --> 00:08:16,668 direction. We also see that effective to to to bring that 211 00:08:16,668 --> 00:08:18,667 effective to to to bring that benefits to society. This is 212 00:08:18,667 --> 00:08:19,500 benefits to society. This is something that we’re addressing 213 00:08:19,500 --> 00:08:20,734 something that we’re addressing here because obviously we need 214 00:08:20,734 --> 00:08:23,034 here because obviously we need to look at it. From the 215 00:08:23,034 --> 00:08:24,133 to look at it. From the individual banks perspective, 216 00:08:24,133 --> 00:08:25,034 individual banks perspective, which is also valid 217 00:08:25,034 --> 00:08:27,168 which is also valid perspective, but up for I think 218 00:08:27,168 --> 00:08:29,801 perspective, but up for I think the the regulators and the 219 00:08:29,801 --> 00:08:31,966 the the regulators and the public authorities so there are 220 00:08:31,966 --> 00:08:34,234 public authorities so there are net benefits for society, but 221 00:08:34,234 --> 00:08:35,867 net benefits for society, but we also see that there’s two 222 00:08:35,867 --> 00:08:37,934 we also see that there’s two gaps that need to be addressed 223 00:08:37,934 --> 00:08:39,202 gaps that need to be addressed and not be more explicit about 224 00:08:39,202 --> 00:08:42,267 and not be more explicit about this in a second. so. starting 225 00:08:42,267 --> 00:08:43,867 this in a second. so. starting with this indicators that we’ve 226 00:08:43,867 --> 00:08:46,668 with this indicators that we’ve looked at what you see here. 227 00:08:46,668 --> 00:08:48,900 looked at what you see here. First of all is that the the 228 00:08:48,900 --> 00:08:50,267 First of all is that the the capitals of the global 229 00:08:50,267 --> 00:08:54,267 capitals of the global systemically important banks. 230 00:09:25,067 --> 00:09:26,534 More more recent years so here 231 00:09:26,534 --> 00:09:28,402 More more recent years so here the promise is less pronounced 232 00:09:28,402 --> 00:09:31,967 the promise is less pronounced than in other regions 233 00:09:32,267 --> 00:09:33,868 we’ve also looked at how this 234 00:09:33,868 --> 00:09:35,168 we’ve also looked at how this has affected lending of banks 235 00:09:35,168 --> 00:09:37,533 has affected lending of banks and the the big picture that 236 00:09:37,533 --> 00:09:40,167 and the the big picture that lending has not really 237 00:09:40,167 --> 00:09:41,667 lending has not really declined. Overall. What is 238 00:09:41,667 --> 00:09:43,467 declined. Overall. What is interesting to see is that if 239 00:09:43,467 --> 00:09:44,934 interesting to see is that if you look at the left side of 240 00:09:44,934 --> 00:09:48,267 you look at the left side of this pattern that both 241 00:09:48,267 --> 00:09:49,533 this pattern that both domestically and globally 242 00:09:49,533 --> 00:09:50,267 domestically and globally systemically important banks 243 00:09:50,267 --> 00:09:52,234 systemically important banks have somewhat reduced their 244 00:09:52,234 --> 00:09:54,133 have somewhat reduced their market shares and other banks 245 00:09:54,133 --> 00:09:57,334 market shares and other banks have. so we don’t see an 246 00:09:57,334 --> 00:09:58,900 have. so we don’t see an overall declining credit, but 247 00:09:58,900 --> 00:10:01,167 overall declining credit, but we see a reallocation of market 248 00:10:01,167 --> 00:10:02,534 we see a reallocation of market shares, which is perhaps 249 00:10:02,534 --> 00:10:06,167 shares, which is perhaps something you would expect that 250 00:10:06,167 --> 00:10:07,201 something you would expect that decline in market share at the 251 00:10:07,201 --> 00:10:08,401 decline in market share at the G is a little bit less 252 00:10:08,401 --> 00:10:09,933 G is a little bit less pronounced in Europe. That’s 253 00:10:09,933 --> 00:10:11,800 pronounced in Europe. That’s what you see on the on the 254 00:10:11,800 --> 00:10:15,202 what you see on the on the left-hand side. so this is a 255 00:10:15,202 --> 00:10:16,534 left-hand side. so this is a bit what has happened with the 256 00:10:16,534 --> 00:10:17,567 bit what has happened with the with the with the banks. I’m 257 00:10:17,567 --> 00:10:18,801 with the with the banks. I’m sure we’ll come back to some of 258 00:10:18,801 --> 00:10:21,468 sure we’ll come back to some of the details what the group has 259 00:10:21,468 --> 00:10:22,668 the details what the group has done as well and I think this 260 00:10:22,668 --> 00:10:23,868 done as well and I think this is interesting both for policy 261 00:10:23,868 --> 00:10:25,467 is interesting both for policy and also for for researchers is 262 00:10:25,467 --> 00:10:28,301 and also for for researchers is to compile. Evidence on 263 00:10:28,301 --> 00:10:29,734 to compile. Evidence on resolution reforms, so there’s 264 00:10:29,734 --> 00:10:31,867 resolution reforms, so there’s a resolution reform index that 265 00:10:31,867 --> 00:10:33,202 a resolution reform index that we have constructed here you 266 00:10:33,202 --> 00:10:36,033 we have constructed here you see the the overall increase in 267 00:10:36,033 --> 00:10:37,601 see the the overall increase in implementation of resolution 268 00:10:37,601 --> 00:10:39,667 implementation of resolution policies you’ll also see 269 00:10:39,667 --> 00:10:41,033 policies you’ll also see distinctions between the home 270 00:10:41,033 --> 00:10:43,201 distinctions between the home and host countries of Jesus of 271 00:10:43,201 --> 00:10:44,401 and host countries of Jesus of the home jurisdictions have 272 00:10:44,401 --> 00:10:46,934 the home jurisdictions have done more probably because also 273 00:10:46,934 --> 00:10:48,167 done more probably because also affect the need was more 274 00:10:48,167 --> 00:10:50,667 affect the need was more pressing and a lot of obviously 275 00:10:50,667 --> 00:10:52,134 pressing and a lot of obviously has also happened in Europe. so 276 00:10:52,134 --> 00:10:53,202 has also happened in Europe. so these are the results broken 277 00:10:53,202 --> 00:10:56,134 these are the results broken down by country in Europe, and 278 00:10:56,134 --> 00:10:57,334 down by country in Europe, and of course, it has a lot to do 279 00:10:57,334 --> 00:10:58,802 of course, it has a lot to do with the implementation of the 280 00:10:58,802 --> 00:11:01,268 with the implementation of the BRD the Bank. Resolution 281 00:11:01,268 --> 00:11:03,734 BRD the Bank. Resolution directive so there has been 282 00:11:03,734 --> 00:11:05,700 directive so there has been significant process progress in 283 00:11:05,700 --> 00:11:07,967 significant process progress in terms of visibility of 284 00:11:07,967 --> 00:11:09,734 terms of visibility of resolution, but we also wanted 285 00:11:09,734 --> 00:11:11,868 resolution, but we also wanted to see is how about credibility 286 00:11:11,868 --> 00:11:13,366 to see is how about credibility of markets and I’m sure that 287 00:11:13,366 --> 00:11:15,202 of markets and I’m sure that Excel has a lot of to say about 288 00:11:15,202 --> 00:11:16,167 Excel has a lot of to say about this. So how what is the 289 00:11:16,167 --> 00:11:17,501 this. So how what is the assessment of market 290 00:11:17,501 --> 00:11:20,401 assessment of market participants on the the 291 00:11:20,401 --> 00:11:21,868 participants on the the credibility of a resolution 292 00:11:21,868 --> 00:11:25,467 credibility of a resolution reforms we looked at a lot of 293 00:11:25,467 --> 00:11:26,900 reforms we looked at a lot of previous evidence. we found 294 00:11:26,900 --> 00:11:29,267 previous evidence. we found that previous evidence is 295 00:11:29,267 --> 00:11:30,468 that previous evidence is somewhat patchy because most of 296 00:11:30,468 --> 00:11:34,967 somewhat patchy because most of the studies that have. 297 00:12:29,334 --> 00:12:32,901 Oops. can you can you handle it 298 00:12:32,901 --> 00:12:34,534 Oops. can you can you handle it because my computer just told 299 00:12:34,534 --> 00:12:35,568 because my computer just told me that the connection is 300 00:12:35,568 --> 00:12:37,467 me that the connection is stable again and I stay with 301 00:12:37,467 --> 00:12:39,068 stable again and I stay with you actually I can’t hear you 302 00:12:39,068 --> 00:12:41,068 you actually I can’t hear you very well. I didn’t have 303 00:12:41,068 --> 00:12:42,401 very well. I didn’t have experience problems. Okay, so 304 00:12:42,401 --> 00:12:44,602 experience problems. Okay, so it was just a computer I was in 305 00:12:44,602 --> 00:12:50,200 it was just a computer I was in so overly cautious so the the 306 00:12:50,200 --> 00:12:51,667 so overly cautious so the the funding cost advantages have 307 00:12:51,667 --> 00:12:53,466 funding cost advantages have declined after the reforms. 308 00:12:53,466 --> 00:12:55,601 declined after the reforms. whether or not, it’s hard to 309 00:12:55,601 --> 00:12:57,068 whether or not, it’s hard to say. but at least it’s a it’s a 310 00:12:57,068 --> 00:12:59,068 say. but at least it’s a it’s a very clear pattern but there’s 311 00:12:59,068 --> 00:13:01,302 very clear pattern but there’s still not as still at the at 312 00:13:01,302 --> 00:13:03,334 still not as still at the at the level not that different. A 313 00:13:03,334 --> 00:13:05,634 the level not that different. A pre causes period so that’s 314 00:13:05,634 --> 00:13:07,134 pre causes period so that’s also something that needs to be 315 00:13:07,134 --> 00:13:08,801 also something that needs to be brought in mind and what’s 316 00:13:08,801 --> 00:13:10,933 brought in mind and what’s interesting is that the funding 317 00:13:10,933 --> 00:13:12,534 interesting is that the funding cost advantages have fallen 318 00:13:12,534 --> 00:13:15,000 cost advantages have fallen more the more effective or the 319 00:13:15,000 --> 00:13:16,634 more the more effective or the the the The more decisive has 320 00:13:16,634 --> 00:13:18,634 the the The more decisive has been the implementation of 321 00:13:18,634 --> 00:13:19,599 been the implementation of resolution reforms. so there’s 322 00:13:19,599 --> 00:13:21,966 resolution reforms. so there’s a correlation and also the 323 00:13:21,966 --> 00:13:22,500 a correlation and also the estimates of funding cost 324 00:13:22,500 --> 00:13:24,833 estimates of funding cost advantages we have more link to 325 00:13:24,833 --> 00:13:26,568 advantages we have more link to the list of the of the 326 00:13:26,568 --> 00:13:28,534 the list of the of the institutions so there’s there’s 327 00:13:28,534 --> 00:13:29,901 institutions so there’s there’s progress there in terms of 328 00:13:29,901 --> 00:13:31,400 progress there in terms of credit credibility that we can 329 00:13:31,400 --> 00:13:33,868 credit credibility that we can also see and measure in the 330 00:13:33,868 --> 00:13:36,899 also see and measure in the data. 331 00:14:40,433 --> 00:14:41,600 There’s a lot of information 332 00:14:41,600 --> 00:14:43,334 There’s a lot of information gaps internationally, which is 333 00:14:43,334 --> 00:14:47,734 gaps internationally, which is the holders of in a better or 334 00:14:47,734 --> 00:14:49,267 the holders of in a better or you’re actually has a good data 335 00:14:49,267 --> 00:14:49,967 you’re actually has a good data infrastructure. So maybe that’s 336 00:14:49,967 --> 00:14:52,234 infrastructure. So maybe that’s also something to to stress in 337 00:14:52,234 --> 00:14:55,567 also something to to stress in the in the discussion and we 338 00:14:55,567 --> 00:14:57,168 the in the discussion and we find that monitoring can be 339 00:14:57,168 --> 00:14:59,567 find that monitoring can be enhanced with regard to the 340 00:14:59,567 --> 00:15:01,234 enhanced with regard to the domestic systemically important 341 00:15:01,234 --> 00:15:04,666 domestic systemically important banks and also as for some of 342 00:15:04,666 --> 00:15:06,933 banks and also as for some of the activity has shifted to a 343 00:15:06,933 --> 00:15:08,402 the activity has shifted to a non-bank financials. It may 344 00:15:08,402 --> 00:15:09,968 non-bank financials. It may also be that risk that shifted 345 00:15:09,968 --> 00:15:12,401 also be that risk that shifted so that needs to be monitored. 346 00:15:12,401 --> 00:15:14,601 so that needs to be monitored. so. I would like to close and 347 00:15:14,601 --> 00:15:16,802 so. I would like to close and get advertise that we need 348 00:15:16,802 --> 00:15:18,533 get advertise that we need feedback in this conversation 349 00:15:18,533 --> 00:15:20,500 feedback in this conversation today, but also from the 350 00:15:20,500 --> 00:15:21,334 today, but also from the audience and reach out to 351 00:15:21,334 --> 00:15:23,067 audience and reach out to others who can join us today 352 00:15:23,067 --> 00:15:25,601 others who can join us today and that’s basically three 353 00:15:25,601 --> 00:15:26,934 and that’s basically three things that we’re interested in 354 00:15:26,934 --> 00:15:29,267 things that we’re interested in which is our drawing the right 355 00:15:29,267 --> 00:15:30,933 which is our drawing the right in in in preparing so we looked 356 00:15:30,933 --> 00:15:32,700 in in in preparing so we looked at a lot of evidence and we 357 00:15:32,700 --> 00:15:34,434 at a lot of evidence and we draw some conclusions. are we 358 00:15:34,434 --> 00:15:36,900 draw some conclusions. are we doing this in the sufficiency 359 00:15:36,900 --> 00:15:38,100 doing this in the sufficiency balanced way I was missing 360 00:15:38,100 --> 00:15:40,667 balanced way I was missing anything other studies and 361 00:15:40,667 --> 00:15:42,867 anything other studies and disturb scope for updating what 362 00:15:42,867 --> 00:15:43,799 disturb scope for updating what we have done and now that we’ve 363 00:15:43,799 --> 00:15:45,599 we have done and now that we’ve in the environment, I should 364 00:15:45,599 --> 00:15:46,933 in the environment, I should say that all the imperial 365 00:15:46,933 --> 00:15:47,867 say that all the imperial analysis has been finished 366 00:15:47,867 --> 00:15:52,500 analysis has been finished prior to the. how to provide 367 00:15:52,500 --> 00:15:54,267 prior to the. how to provide feedback all the informations 368 00:15:54,267 --> 00:15:55,734 feedback all the informations on the FSB website, and there’s 369 00:15:55,734 --> 00:15:58,266 on the FSB website, and there’s also hopefully easy to remember 370 00:15:58,266 --> 00:15:59,867 also hopefully easy to remember Email address at the FSB, which 371 00:15:59,867 --> 00:16:03,866 Email address at the FSB, which is FSB at SB and by the end of 372 00:16:03,866 --> 00:16:05,534 is FSB at SB and by the end of September feedback can come in 373 00:16:05,534 --> 00:16:08,801 September feedback can come in which can also be informal but 374 00:16:08,801 --> 00:16:09,668 which can also be informal but submitted through the website 375 00:16:09,668 --> 00:16:11,501 submitted through the website so that we get to a good 376 00:16:11,501 --> 00:16:12,968 so that we get to a good feedback from the from the 377 00:16:12,968 --> 00:16:14,668 feedback from the from the audience. Thanks a lot very 378 00:16:14,668 --> 00:16:17,000 audience. Thanks a lot very nice summer activity for our 379 00:16:17,000 --> 00:16:19,967 nice summer activity for our audience and I immediately 380 00:16:19,967 --> 00:16:22,234 audience and I immediately gives the floor to have tons of 381 00:16:22,234 --> 00:16:24,267 gives the floor to have tons of questions but first let’s hear 382 00:16:24,267 --> 00:16:26,700 questions but first let’s hear from. You what to think about 383 00:16:26,700 --> 00:16:29,233 from. You what to think about it too. Alex. Yeah. Thanks 384 00:16:29,233 --> 00:16:31,934 it too. Alex. Yeah. Thanks Nila. Thanks for the invitation 385 00:16:31,934 --> 00:16:34,567 Nila. Thanks for the invitation and also thanks Claudia and a 386 00:16:34,567 --> 00:16:36,801 and also thanks Claudia and a critics for this for this 387 00:16:36,801 --> 00:16:37,833 critics for this for this consultation, I mean there’s a 388 00:16:37,833 --> 00:16:38,934 consultation, I mean there’s a lot of excellent analysis that 389 00:16:38,934 --> 00:16:41,334 lot of excellent analysis that so I confess that probably you 390 00:16:41,334 --> 00:16:42,766 so I confess that probably you need more time with my teams to 391 00:16:42,766 --> 00:16:45,267 need more time with my teams to looking to more into some more 392 00:16:45,267 --> 00:16:47,201 looking to more into some more details that’s but yeah, I will 393 00:16:47,201 --> 00:16:49,334 details that’s but yeah, I will be there and I start with the 394 00:16:49,334 --> 00:16:50,934 be there and I start with the conclusion is that actually we 395 00:16:50,934 --> 00:16:55,733 conclusion is that actually we do agree with the sense of the 396 00:17:30,900 --> 00:17:33,334 And the credit rating is 397 00:17:33,334 --> 00:17:34,567 And the credit rating is typically constructed from we 398 00:17:34,567 --> 00:17:36,202 typically constructed from we start from what we call the 399 00:17:36,202 --> 00:17:37,866 start from what we call the standalone assessment of a Bank 400 00:17:37,866 --> 00:17:40,268 standalone assessment of a Bank what’s it’s Project Wellness, 401 00:17:40,268 --> 00:17:41,700 what’s it’s Project Wellness, excluding any consideration of 402 00:17:41,700 --> 00:17:44,034 excluding any consideration of support and on top of that 403 00:17:44,034 --> 00:17:47,101 support and on top of that until 2015, We typically in 404 00:17:47,101 --> 00:17:50,634 until 2015, We typically in some cases adding some uplift 405 00:17:50,634 --> 00:17:53,801 some cases adding some uplift for support it could be for 406 00:17:53,801 --> 00:17:54,967 for support it could be for expectation of government 407 00:17:54,967 --> 00:17:56,167 expectation of government support of, for instance for 408 00:17:56,167 --> 00:17:57,202 support of, for instance for some expectation of group 409 00:17:57,202 --> 00:18:00,767 some expectation of group support Response to the to the 410 00:18:00,767 --> 00:18:03,234 support Response to the to the too big to fail reforms what 411 00:18:03,234 --> 00:18:04,934 too big to fail reforms what did we do well in the early 412 00:18:04,934 --> 00:18:07,299 did we do well in the early 2015 we first remove any 413 00:18:07,299 --> 00:18:09,001 2015 we first remove any government support and uplift 414 00:18:09,001 --> 00:18:11,001 government support and uplift from the ratings on the holding 415 00:18:11,001 --> 00:18:12,867 from the ratings on the holding companies of a US or European 416 00:18:12,867 --> 00:18:15,334 companies of a US or European banks and then later in the 417 00:18:15,334 --> 00:18:17,401 banks and then later in the year as well, and a lot of a 418 00:18:17,401 --> 00:18:19,134 year as well, and a lot of a couple of studies to show you 419 00:18:19,134 --> 00:18:22,000 couple of studies to show you that we removed we change our 420 00:18:22,000 --> 00:18:23,199 that we removed we change our assessments of this 421 00:18:23,199 --> 00:18:24,435 assessments of this supportiveness of a number of 422 00:18:24,435 --> 00:18:26,500 supportiveness of a number of countries in Europe and also 423 00:18:26,500 --> 00:18:27,801 countries in Europe and also the US we moved it to where we 424 00:18:27,801 --> 00:18:30,202 the US we moved it to where we used to. Supportive to support 425 00:18:30,202 --> 00:18:32,699 used to. Supportive to support and certain and in prior to 426 00:18:32,699 --> 00:18:35,268 and certain and in prior to that we assess the resolution 427 00:18:35,268 --> 00:18:37,733 that we assess the resolution regimes in the US and Europe to 428 00:18:37,733 --> 00:18:40,799 regimes in the US and Europe to PM where we call them effective 429 00:18:40,799 --> 00:18:43,367 PM where we call them effective and therefore started actually 430 00:18:43,367 --> 00:18:44,334 and therefore started actually and that was probably quite a 431 00:18:44,334 --> 00:18:45,133 and that was probably quite a thoughtful looking assessment 432 00:18:45,133 --> 00:18:47,099 thoughtful looking assessment because I was 2015 still early 433 00:18:47,099 --> 00:18:48,800 because I was 2015 still early days, but we saw that there was 434 00:18:48,800 --> 00:18:52,601 days, but we saw that there was a credible path the credible 435 00:18:52,601 --> 00:18:54,033 a credible path the credible framework Andre sense as well 436 00:18:54,033 --> 00:18:56,934 framework Andre sense as well the jurisdictions in Europe, 437 00:18:56,934 --> 00:18:59,666 the jurisdictions in Europe, for instance. To put in place a 438 00:18:59,666 --> 00:19:01,833 for instance. To put in place a framework so we took this 439 00:19:01,833 --> 00:19:03,900 framework so we took this assessments and also reflecting 440 00:19:03,900 --> 00:19:05,600 assessments and also reflecting the existing bedding the first 441 00:19:05,600 --> 00:19:07,167 the existing bedding the first also expectations of the build 442 00:19:07,167 --> 00:19:11,367 also expectations of the build up. we in many cases, we 443 00:19:11,367 --> 00:19:11,967 up. we in many cases, we replaced the knobs of 444 00:19:11,967 --> 00:19:13,534 replaced the knobs of government and support by not 445 00:19:13,534 --> 00:19:15,567 government and support by not of something we call a like 446 00:19:15,567 --> 00:19:19,300 of something we call a like physically like it’s on suit on 447 00:19:19,300 --> 00:19:21,600 physically like it’s on suit on version of the of like to 448 00:19:21,600 --> 00:19:22,434 version of the of like to reflect the fact that we think 449 00:19:22,434 --> 00:19:24,267 reflect the fact that we think that for the traditional and 450 00:19:24,267 --> 00:19:25,799 that for the traditional and secure phone holders that were 451 00:19:25,799 --> 00:19:27,068 secure phone holders that were potentially some benefits from 452 00:19:27,068 --> 00:19:30,133 potentially some benefits from this. 453 00:19:30,234 --> 00:19:32,634 Christians of of the most 454 00:19:32,634 --> 00:19:33,801 Christians of of the most liabilities, and that does mean 455 00:19:33,801 --> 00:19:38,134 liabilities, and that does mean that Alexander, I have to 456 00:19:38,134 --> 00:19:40,567 that Alexander, I have to exercise my duties as a police 457 00:19:40,567 --> 00:19:43,334 exercise my duties as a police T Rex courses a total loss 458 00:19:43,334 --> 00:19:45,001 T Rex courses a total loss absorbing capacity that is 459 00:19:45,001 --> 00:19:46,534 absorbing capacity that is defined by the financial 460 00:19:46,534 --> 00:19:49,601 defined by the financial stability boards standard good 461 00:19:49,601 --> 00:19:51,400 stability boards standard good point. Thanks, I don’t hesitate 462 00:19:51,400 --> 00:19:53,134 point. Thanks, I don’t hesitate to agencies. We tend to have 463 00:19:53,134 --> 00:19:54,700 to agencies. We tend to have like so many acronyms as well 464 00:19:54,700 --> 00:19:58,234 like so many acronyms as well so but that doesn’t that’. 465 00:19:58,234 --> 00:19:58,899 so but that doesn’t that’. Indians with all these actions 466 00:19:58,899 --> 00:20:00,667 Indians with all these actions in 2015, They were only a 467 00:20:00,667 --> 00:20:02,768 in 2015, They were only a handful of downgrades of 468 00:20:02,768 --> 00:20:04,934 handful of downgrades of operating companies and that 469 00:20:04,934 --> 00:20:06,535 operating companies and that shows that we did expect that 470 00:20:06,535 --> 00:20:08,833 shows that we did expect that over time that the most a 471 00:20:08,833 --> 00:20:10,701 over time that the most a substitution or chance of the 472 00:20:10,701 --> 00:20:12,567 substitution or chance of the distribution of losses in case 473 00:20:12,567 --> 00:20:14,434 distribution of losses in case of crisis between the taxpayer 474 00:20:14,434 --> 00:20:16,701 of crisis between the taxpayer and the governments towards 475 00:20:16,701 --> 00:20:18,868 and the governments towards more the holders of those 476 00:20:18,868 --> 00:20:21,602 more the holders of those support instruments so so if 477 00:20:21,602 --> 00:20:23,367 support instruments so so if you if we fast forward and I’ve 478 00:20:23,367 --> 00:20:24,667 you if we fast forward and I’ve just got a couple of slides, 479 00:20:24,667 --> 00:20:26,533 just got a couple of slides, I’ll be Super quick, I promise. 480 00:20:26,533 --> 00:20:31,334 I’ll be Super quick, I promise. So that we can go the sections 481 00:20:31,334 --> 00:20:33,001 So that we can go the sections that Misty my technical skills 482 00:20:33,001 --> 00:20:35,799 that Misty my technical skills are good enough. Can you see my 483 00:20:35,799 --> 00:20:39,935 are good enough. Can you see my slide here? Yeah. So so if you 484 00:20:39,935 --> 00:20:41,101 slide here? Yeah. So so if you fast forward five years, I mean 485 00:20:41,101 --> 00:20:42,534 fast forward five years, I mean this is actually we did you 486 00:20:42,534 --> 00:20:44,534 this is actually we did you have in April 2019, I was a bit 487 00:20:44,534 --> 00:20:46,234 have in April 2019, I was a bit rush so but I think the data 488 00:20:46,234 --> 00:20:49,702 rush so but I think the data are still correct so you can 489 00:20:49,702 --> 00:20:50,933 are still correct so you can see on this chart two 490 00:20:50,933 --> 00:20:52,134 see on this chart two dimensions, according to which 491 00:20:52,134 --> 00:20:56,399 dimensions, according to which we look at we’ll look at 492 00:20:56,399 --> 00:21:00,000 we look at we’ll look at support. To fail the first 493 00:21:00,000 --> 00:21:01,802 support. To fail the first dimensions the assessment of 494 00:21:01,802 --> 00:21:04,034 dimensions the assessment of government propensity supports 495 00:21:04,034 --> 00:21:05,634 government propensity supports and you can see have three 496 00:21:05,634 --> 00:21:07,266 and you can see have three categories. so if you’re an 497 00:21:07,266 --> 00:21:09,168 categories. so if you’re an uncertain in our ratings we 498 00:21:09,168 --> 00:21:10,434 uncertain in our ratings we contacting and any government 499 00:21:10,434 --> 00:21:12,667 contacting and any government support uplift the support you 500 00:21:12,667 --> 00:21:14,666 support uplift the support you and the support you depending 501 00:21:14,666 --> 00:21:18,733 and the support you depending on the seven rating we could we 502 00:21:18,733 --> 00:21:20,133 on the seven rating we could we can include not government 503 00:21:20,133 --> 00:21:21,968 can include not government supports the second dimension 504 00:21:21,968 --> 00:21:23,267 supports the second dimension is what we call a lack as I 505 00:21:23,267 --> 00:21:25,133 is what we call a lack as I said it’s additional loss of 506 00:21:25,133 --> 00:21:27,168 said it’s additional loss of building capacity. It’s a. To 507 00:21:27,168 --> 00:21:31,301 building capacity. It’s a. To look at the potential uplift 508 00:21:31,301 --> 00:21:33,868 look at the potential uplift for those instruments and we we 509 00:21:33,868 --> 00:21:36,100 for those instruments and we we do this. we assess all the all 510 00:21:36,100 --> 00:21:38,767 do this. we assess all the all the systems, according to how 511 00:21:38,767 --> 00:21:40,067 the systems, according to how effective this resolution 512 00:21:40,067 --> 00:21:40,899 effective this resolution framework is in those 513 00:21:40,899 --> 00:21:43,067 framework is in those countries. That’s a condition 514 00:21:43,067 --> 00:21:45,068 countries. That’s a condition for us to potentially include a 515 00:21:45,068 --> 00:21:48,300 for us to potentially include a place for those cushion of sub 516 00:21:48,300 --> 00:21:49,134 place for those cushion of sub liabilities and you can see on 517 00:21:49,134 --> 00:21:50,935 liabilities and you can see on this map without going into too 518 00:21:50,935 --> 00:21:52,802 this map without going into too much details. the the journey 519 00:21:52,802 --> 00:21:54,534 much details. the the journey that some of these 520 00:21:54,534 --> 00:21:55,399 that some of these jurisdictions have gone 521 00:21:55,399 --> 00:21:58,300 jurisdictions have gone through. Any in Europe, as I 522 00:21:58,300 --> 00:21:59,334 through. Any in Europe, as I said, you can see bottom left 523 00:21:59,334 --> 00:22:01,467 said, you can see bottom left on the side as in the US, We 524 00:22:01,467 --> 00:22:04,100 on the side as in the US, We don’t support but in some cases 525 00:22:04,100 --> 00:22:06,334 don’t support but in some cases where we can include elect 526 00:22:06,334 --> 00:22:08,268 where we can include elect supports and we’ve seen 527 00:22:08,268 --> 00:22:10,534 supports and we’ve seen recently, Hong Kong or Canada 528 00:22:10,534 --> 00:22:12,534 recently, Hong Kong or Canada still staying in the supportive 529 00:22:12,534 --> 00:22:13,868 still staying in the supportive bucket, for instance, but with 530 00:22:13,868 --> 00:22:16,834 bucket, for instance, but with a more effective resolution 531 00:22:16,834 --> 00:22:17,867 a more effective resolution regime, which shows that here 532 00:22:17,867 --> 00:22:19,802 regime, which shows that here in this case we actually 533 00:22:19,802 --> 00:22:20,567 in this case we actually affecting government support, 534 00:22:20,567 --> 00:22:22,801 affecting government support, but we think that could be some 535 00:22:22,801 --> 00:22:25,834 but we think that could be some option in some cases and then 536 00:22:25,834 --> 00:22:27,168 option in some cases and then some jurisdictions for instance 537 00:22:27,168 --> 00:22:29,733 some jurisdictions for instance in top right hand side where we 538 00:22:29,733 --> 00:22:31,568 in top right hand side where we still often. Reflect on 539 00:22:31,568 --> 00:22:33,134 still often. Reflect on supports and we don’t think 540 00:22:33,134 --> 00:22:35,967 supports and we don’t think that’s the resolution regimes 541 00:22:35,967 --> 00:22:40,534 that’s the resolution regimes is truly effective yet and 542 00:22:40,534 --> 00:22:43,934 is truly effective yet and maybe the last night for me, 543 00:22:43,934 --> 00:22:45,967 maybe the last night for me, it’s just as well. I think we 544 00:22:45,967 --> 00:22:49,334 it’s just as well. I think we need to be and that’s just 545 00:22:49,334 --> 00:22:50,267 need to be and that’s just jurisdictions can be complying 546 00:22:50,267 --> 00:22:52,300 jurisdictions can be complying with the FSB objectives to to 547 00:22:52,300 --> 00:22:56,268 with the FSB objectives to to fail but with different with 548 00:22:56,268 --> 00:22:58,668 fail but with different with the different and you can see 549 00:22:58,668 --> 00:23:03,068 the different and you can see in this arrow really with. 550 00:23:32,100 --> 00:23:34,500 Countries where just a 551 00:23:34,500 --> 00:23:36,034 Countries where just a resolution is effective and we 552 00:23:36,034 --> 00:23:39,168 resolution is effective and we include some uplifts for those 553 00:23:39,168 --> 00:23:40,834 include some uplifts for those instruments or countries in 554 00:23:40,834 --> 00:23:44,268 instruments or countries in yellow where framework is also 555 00:23:44,268 --> 00:23:45,667 yellow where framework is also effective, but we may not yet 556 00:23:45,667 --> 00:23:47,334 effective, but we may not yet include a place and that could 557 00:23:47,334 --> 00:23:48,801 include a place and that could be for a variety of reasons 558 00:23:48,801 --> 00:23:51,202 be for a variety of reasons sometimes the sovereign rating 559 00:23:51,202 --> 00:23:53,500 sometimes the sovereign rating level can act as a as a as a 560 00:23:53,500 --> 00:23:56,266 level can act as a as a as a seal but I probably stop there 561 00:23:56,266 --> 00:23:57,202 seal but I probably stop there in the interest of time, but 562 00:23:57,202 --> 00:23:58,434 in the interest of time, but just to show that these slides 563 00:23:58,434 --> 00:23:59,468 just to show that these slides that we do think that’s that’s 564 00:23:59,468 --> 00:24:04,167 that we do think that’s that’s been real. but does vary and 565 00:24:04,167 --> 00:24:06,134 been real. but does vary and the objectives of the 566 00:24:06,134 --> 00:24:07,601 the objectives of the jurisdictions have vary, but 567 00:24:07,601 --> 00:24:10,000 jurisdictions have vary, but there credible framework that’s 568 00:24:10,000 --> 00:24:12,767 there credible framework that’s been put in place on this multi 569 00:24:12,767 --> 00:24:16,033 been put in place on this multi year journey really has stopped 570 00:24:16,033 --> 00:24:17,767 year journey really has stopped showing up and hand over back 571 00:24:17,767 --> 00:24:20,134 showing up and hand over back to you. Thank you so much to 572 00:24:20,134 --> 00:24:21,734 to you. Thank you so much to both of you. Also for keeping 573 00:24:21,734 --> 00:24:22,967 both of you. Also for keeping the time discipline we have 574 00:24:22,967 --> 00:24:24,667 the time discipline we have some time now a bit more than 575 00:24:24,667 --> 00:24:26,334 some time now a bit more than half an hour for questions. We 576 00:24:26,334 --> 00:24:27,833 half an hour for questions. We already have a number of 577 00:24:27,833 --> 00:24:28,734 already have a number of questions on the slide door 578 00:24:28,734 --> 00:24:31,734 questions on the slide door platforms. so I repeat. Slide 579 00:24:31,734 --> 00:24:33,934 platforms. so I repeat. Slide the is our platform for asking 580 00:24:33,934 --> 00:24:35,700 the is our platform for asking questions to call this hashtag 581 00:24:35,700 --> 00:24:40,001 questions to call this hashtag TBT F lowercase kept whatever 582 00:24:40,001 --> 00:24:42,201 TBT F lowercase kept whatever you prefer I’ll start with the 583 00:24:42,201 --> 00:24:44,567 you prefer I’ll start with the question of my own. you have a 584 00:24:44,567 --> 00:24:49,567 question of my own. you have a cat songs and P, which is 585 00:24:49,567 --> 00:24:50,967 cat songs and P, which is euphemistically called support 586 00:24:50,967 --> 00:24:53,934 euphemistically called support and certain so you don’t really 587 00:24:53,934 --> 00:24:55,201 and certain so you don’t really have a category where you say 588 00:24:55,201 --> 00:24:57,434 have a category where you say there’s not going to be any 589 00:24:57,434 --> 00:24:59,601 there’s not going to be any support at all in any case and 590 00:24:59,601 --> 00:25:02,667 support at all in any case and since the. Anne, a report, 591 00:25:02,667 --> 00:25:05,001 since the. Anne, a report, which is NX GF, has been 592 00:25:05,001 --> 00:25:09,634 which is NX GF, has been reported page 124 126 where the 593 00:25:09,634 --> 00:25:12,634 reported page 124 126 where the FS BS listing cases of Bank 594 00:25:12,634 --> 00:25:14,401 FS BS listing cases of Bank failures in recent years or 595 00:25:14,401 --> 00:25:15,734 failures in recent years or around the world. There are 596 00:25:15,734 --> 00:25:17,735 around the world. There are typically not G sips, but some 597 00:25:17,735 --> 00:25:20,201 typically not G sips, but some of them are pretty large. and 598 00:25:20,201 --> 00:25:22,934 of them are pretty large. and what we see is that you know 599 00:25:22,934 --> 00:25:24,234 what we see is that you know too big to fail is alive and 600 00:25:24,234 --> 00:25:26,234 too big to fail is alive and well so most of these cases 601 00:25:26,234 --> 00:25:29,201 well so most of these cases have. involved what the common 602 00:25:29,201 --> 00:25:31,534 have. involved what the common person would. Bailout So here’s 603 00:25:31,534 --> 00:25:35,067 person would. Bailout So here’s my question to both of you to 604 00:25:35,067 --> 00:25:37,134 my question to both of you to reforms are titled ending to be 605 00:25:37,134 --> 00:25:39,033 reforms are titled ending to be to fail, but is there any 606 00:25:39,033 --> 00:25:39,801 to fail, but is there any prospect of that? Or is it kind 607 00:25:39,801 --> 00:25:41,868 prospect of that? Or is it kind of an aspiration that will 608 00:25:41,868 --> 00:25:43,600 of an aspiration that will remain just that in inspiration 609 00:25:43,600 --> 00:25:45,467 remain just that in inspiration and something we can be closer 610 00:25:45,467 --> 00:25:48,533 and something we can be closer or farther from but never 611 00:25:48,533 --> 00:25:50,234 or farther from but never really attain starting with 612 00:25:50,234 --> 00:25:52,000 really attain starting with your cloud you need to enroll 613 00:25:52,000 --> 00:25:55,400 your cloud you need to enroll yourself. Yes, Thank you. 614 00:25:55,400 --> 00:25:57,934 yourself. Yes, Thank you. that’s so I’m not sure that’s 615 00:25:57,934 --> 00:25:59,367 that’s so I’m not sure that’s the elephant, but it’s a key 616 00:25:59,367 --> 00:26:01,134 the elephant, but it’s a key question that we all have to 617 00:26:01,134 --> 00:26:03,433 question that we all have to ask ourselves so I think 618 00:26:03,433 --> 00:26:05,833 ask ourselves so I think actually this is ending to big 619 00:26:05,833 --> 00:26:07,334 actually this is ending to big to fail for from my tastes a 620 00:26:07,334 --> 00:26:10,501 to fail for from my tastes a bit to so that means that you 621 00:26:10,501 --> 00:26:13,867 bit to so that means that you have to begin with and then you 622 00:26:13,867 --> 00:26:15,068 have to begin with and then you ended and you have then you 623 00:26:15,068 --> 00:26:15,966 ended and you have then you have never again, but I think 624 00:26:15,966 --> 00:26:17,634 have never again, but I think what we’ve heard from Ansel 625 00:26:17,634 --> 00:26:19,867 what we’ve heard from Ansel what we also see in the in the 626 00:26:19,867 --> 00:26:21,699 what we also see in the in the evidence that this this is this 627 00:26:21,699 --> 00:26:23,401 evidence that this this is this is a process and with I think 628 00:26:23,401 --> 00:26:26,001 is a process and with I think what we’ve learned and from the 629 00:26:26,001 --> 00:26:27,899 what we’ve learned and from the crisis’. What’s the framework 630 00:26:27,899 --> 00:26:29,101 crisis’. What’s the framework we need to have in place? 631 00:26:29,101 --> 00:26:31,668 we need to have in place? What’s the loss absorbing 632 00:26:31,668 --> 00:26:33,033 What’s the loss absorbing capacity? How do we have to 633 00:26:33,033 --> 00:26:34,402 capacity? How do we have to empower institutions? So this 634 00:26:34,402 --> 00:26:36,234 empower institutions? So this is this has been a big project 635 00:26:36,234 --> 00:26:37,667 is this has been a big project and I think this lessons have 636 00:26:37,667 --> 00:26:38,933 and I think this lessons have been learned so we know what it 637 00:26:38,933 --> 00:26:41,166 been learned so we know what it means to be in place that we’re 638 00:26:41,166 --> 00:26:42,634 means to be in place that we’re putting this into into practice 639 00:26:42,634 --> 00:26:44,533 putting this into into practice where we have this new 640 00:26:44,533 --> 00:26:46,735 where we have this new framework and we’ll be learning 641 00:26:46,735 --> 00:26:47,868 framework and we’ll be learning how the how they’re working 642 00:26:47,868 --> 00:26:49,467 how the how they’re working like I said before so and and 643 00:26:49,467 --> 00:26:50,667 like I said before so and and obviously whenever you create 644 00:26:50,667 --> 00:26:51,634 obviously whenever you create something new, there’s also 645 00:26:51,634 --> 00:26:52,534 something new, there’s also gaps and there’s things that 646 00:26:52,534 --> 00:26:53,935 gaps and there’s things that can be improved. So I think in 647 00:26:53,935 --> 00:26:55,534 can be improved. So I think in that sense we’ve learned how 648 00:26:55,534 --> 00:26:57,834 that sense we’ve learned how to. In terms of what do we need 649 00:26:57,834 --> 00:27:01,034 to. In terms of what do we need and we also now see where where 650 00:27:01,034 --> 00:27:03,700 and we also now see where where things are not perfect yet so 651 00:27:03,700 --> 00:27:05,299 things are not perfect yet so in that sense, I think this is 652 00:27:05,299 --> 00:27:06,567 in that sense, I think this is a journey and we all know that 653 00:27:06,567 --> 00:27:08,234 a journey and we all know that that the banking is very 654 00:27:08,234 --> 00:27:09,501 that the banking is very political. So in that sense, I 655 00:27:09,501 --> 00:27:11,067 political. So in that sense, I think that the next step would 656 00:27:11,067 --> 00:27:12,334 think that the next step would would actually be to look into 657 00:27:12,334 --> 00:27:14,701 would actually be to look into why has there been have them in 658 00:27:14,701 --> 00:27:15,666 why has there been have them in countries that have not 659 00:27:15,666 --> 00:27:17,167 countries that have not implemented resolutions for 660 00:27:17,167 --> 00:27:19,200 implemented resolutions for what I’ve told you was a bit 661 00:27:19,200 --> 00:27:20,601 what I’ve told you was a bit like the average and and the 662 00:27:20,601 --> 00:27:22,867 like the average and and the the direction of travel. But of 663 00:27:22,867 --> 00:27:23,834 the direction of travel. But of course there’s a lot of 664 00:27:23,834 --> 00:27:27,200 course there’s a lot of differences like. but I’m I 665 00:27:27,200 --> 00:27:29,000 differences like. but I’m I think that what we’ve seen here 666 00:27:29,000 --> 00:27:31,201 think that what we’ve seen here is that the new systems have 667 00:27:31,201 --> 00:27:33,600 is that the new systems have moved banks the behavior of 668 00:27:33,600 --> 00:27:35,068 moved banks the behavior of markets so the behavior of 669 00:27:35,068 --> 00:27:35,868 markets so the behavior of government. I think it’s much 670 00:27:35,868 --> 00:27:37,800 government. I think it’s much harder now to say with go to 671 00:27:37,800 --> 00:27:39,434 harder now to say with go to the to the bailout. If we have 672 00:27:39,434 --> 00:27:41,133 the to the bailout. If we have done all this all these other 673 00:27:41,133 --> 00:27:42,800 done all this all these other things so that all these 674 00:27:42,800 --> 00:27:44,034 things so that all these reforms have move system into 675 00:27:44,034 --> 00:27:46,768 reforms have move system into the right direction. and in 676 00:27:46,768 --> 00:27:49,233 the right direction. and in that sense we we’ve made a lot 677 00:27:49,233 --> 00:27:53,367 that sense we we’ve made a lot of progress you mentioned this 678 00:27:53,367 --> 00:27:54,567 of progress you mentioned this this cases of individual Bank 679 00:27:54,567 --> 00:27:55,433 this cases of individual Bank failures, and as you can guess 680 00:27:55,433 --> 00:27:56,467 failures, and as you can guess we have a lot of discussion in 681 00:27:56,467 --> 00:27:57,734 we have a lot of discussion in the in the group and with the 682 00:27:57,734 --> 00:27:59,368 the in the group and with the regulator. So what banks should 683 00:27:59,368 --> 00:28:02,467 regulator. So what banks should be on this. What not so 684 00:28:02,467 --> 00:28:04,735 be on this. What not so actually there’s very few cases 685 00:28:04,735 --> 00:28:06,534 actually there’s very few cases of this state support that have 686 00:28:06,534 --> 00:28:08,168 of this state support that have happened after the reforms have 687 00:28:08,168 --> 00:28:10,402 happened after the reforms have been implemented and that’s 688 00:28:10,402 --> 00:28:11,101 been implemented and that’s interesting because I think 689 00:28:11,101 --> 00:28:13,002 interesting because I think this to some extent these cases 690 00:28:13,002 --> 00:28:14,101 this to some extent these cases are very honest and credit, So 691 00:28:14,101 --> 00:28:15,300 are very honest and credit, So we just didn’t have that many 692 00:28:15,300 --> 00:28:17,768 we just didn’t have that many we don’t have a hundred cases 693 00:28:17,768 --> 00:28:18,468 we don’t have a hundred cases to look at also because of the 694 00:28:18,468 --> 00:28:20,600 to look at also because of the good macro environment of the 695 00:28:20,600 --> 00:28:23,233 good macro environment of the past 10 years or so so there’s 696 00:28:23,233 --> 00:28:24,834 past 10 years or so so there’s there’s very few cases which we 697 00:28:24,834 --> 00:28:26,466 there’s very few cases which we can actually use to judge 698 00:28:26,466 --> 00:28:28,499 can actually use to judge whether the new system is 699 00:28:28,499 --> 00:28:32,567 whether the new system is working on that. And they also 700 00:28:32,567 --> 00:28:34,167 working on that. And they also show how it is politically, 701 00:28:34,167 --> 00:28:34,967 show how it is politically, particularly if you have a lot 702 00:28:34,967 --> 00:28:37,667 particularly if you have a lot of legacy issues to to really 703 00:28:37,667 --> 00:28:39,701 of legacy issues to to really move to the to the debate and 704 00:28:39,701 --> 00:28:41,933 move to the to the debate and options. so I think it’s 705 00:28:41,933 --> 00:28:43,067 options. so I think it’s interesting to look at these 706 00:28:43,067 --> 00:28:43,634 interesting to look at these cases. It’s interesting and 707 00:28:43,634 --> 00:28:45,667 cases. It’s interesting and we’ve also done a lot of work 708 00:28:45,667 --> 00:28:47,133 we’ve also done a lot of work in the in the Bank and 709 00:28:47,133 --> 00:28:48,668 in the in the Bank and specifically for Europe to look 710 00:28:48,668 --> 00:28:49,967 specifically for Europe to look at the cases to see whether 711 00:28:49,967 --> 00:28:51,934 at the cases to see whether your system can be improved but 712 00:28:51,934 --> 00:28:54,067 your system can be improved but I wouldn’t hold these cases 713 00:28:54,067 --> 00:28:55,899 I wouldn’t hold these cases against the the overall 714 00:28:55,899 --> 00:28:57,001 against the the overall structure of the overall 715 00:28:57,001 --> 00:28:58,134 structure of the overall framework, so I find it much 716 00:28:58,134 --> 00:28:59,834 framework, so I find it much more compelling to look at how 717 00:28:59,834 --> 00:29:02,333 more compelling to look at how all the juices all the funding 718 00:29:02,333 --> 00:29:03,801 all the juices all the funding structures of all the G have 719 00:29:03,801 --> 00:29:04,467 structures of all the G have have changed because that’s 720 00:29:04,467 --> 00:29:07,167 have changed because that’s where you see much more of. 721 00:29:07,167 --> 00:29:08,568 where you see much more of. Rather than the individual 722 00:29:08,568 --> 00:29:11,400 Rather than the individual cases that I’ve mentioned in 723 00:29:11,400 --> 00:29:13,734 cases that I’ve mentioned in the in the same vein, I have a 724 00:29:13,734 --> 00:29:15,767 the in the same vein, I have a question from a semi 725 00:29:15,767 --> 00:29:17,634 question from a semi anonymously named the 726 00:29:17,634 --> 00:29:20,800 anonymously named the participant and the H and he’s 727 00:29:20,800 --> 00:29:22,534 participant and the H and he’s asking to be to fail is not 728 00:29:22,534 --> 00:29:23,901 asking to be to fail is not resolved yet what about Middle 729 00:29:23,901 --> 00:29:26,267 resolved yet what about Middle size banks can leave the market 730 00:29:26,267 --> 00:29:27,701 size banks can leave the market easier without public support. 731 00:29:27,701 --> 00:29:29,733 easier without public support. So that’s the question which I 732 00:29:29,733 --> 00:29:31,201 So that’s the question which I would ask. I mean, is it your 733 00:29:31,201 --> 00:29:33,467 would ask. I mean, is it your view that middle-sized banks 734 00:29:33,467 --> 00:29:35,135 view that middle-sized banks are more susceptible to being 735 00:29:35,135 --> 00:29:37,834 are more susceptible to being bailed out because they have 736 00:29:37,834 --> 00:29:38,566 bailed out because they have they don’t have the likes they 737 00:29:38,566 --> 00:29:42,202 they don’t have the likes they don’t have all these 738 00:30:17,067 --> 00:30:19,767 To look at the systemic risk 739 00:30:19,767 --> 00:30:22,100 To look at the systemic risk implications of maintaining 740 00:30:22,100 --> 00:30:23,967 implications of maintaining critical functions. so in that 741 00:30:23,967 --> 00:30:25,034 critical functions. so in that sense, the reports that 742 00:30:25,034 --> 00:30:26,668 sense, the reports that something all about the 743 00:30:26,668 --> 00:30:28,733 something all about the resolution regime, it doesn’t 744 00:30:28,733 --> 00:30:30,034 resolution regime, it doesn’t say specifically that this 745 00:30:30,034 --> 00:30:32,833 say specifically that this regime, how does this specific 746 00:30:32,833 --> 00:30:34,268 regime, how does this specific regime do with large and small 747 00:30:34,268 --> 00:30:35,833 regime do with large and small and midsize things. So in that 748 00:30:35,833 --> 00:30:37,334 and midsize things. So in that sense, I can’t really answer 749 00:30:37,334 --> 00:30:38,667 sense, I can’t really answer that question specifically 750 00:30:38,667 --> 00:30:40,500 that question specifically because we don’t really make 751 00:30:40,500 --> 00:30:42,467 because we don’t really make that distinction here. I think 752 00:30:42,467 --> 00:30:43,899 that distinction here. I think that’s one important lesson 753 00:30:43,899 --> 00:30:45,334 that’s one important lesson from this report and from the 754 00:30:45,334 --> 00:30:46,534 from this report and from the work that we’ve done, which is 755 00:30:46,534 --> 00:30:51,202 work that we’ve done, which is that this is. 756 00:31:20,201 --> 00:31:21,733 Done for the National 757 00:31:21,733 --> 00:31:22,767 Done for the National authorities to be more 758 00:31:22,767 --> 00:31:24,499 authorities to be more transparent about all this 759 00:31:24,499 --> 00:31:26,734 transparent about all this things are how they’re treated 760 00:31:26,734 --> 00:31:27,899 things are how they’re treated what are the policies applying 761 00:31:27,899 --> 00:31:29,235 what are the policies applying to them? But you know I would 762 00:31:29,235 --> 00:31:30,767 to them? But you know I would say this the whole spectrum of 763 00:31:30,767 --> 00:31:33,267 say this the whole spectrum of policies also the the search 764 00:31:33,267 --> 00:31:34,733 policies also the the search charges not just the best 765 00:31:34,733 --> 00:31:36,468 charges not just the best solution framework supply on 766 00:31:36,468 --> 00:31:38,634 solution framework supply on this count. there’s a 767 00:31:38,634 --> 00:31:40,268 this count. there’s a fascinating charge of reports 768 00:31:40,268 --> 00:31:42,700 fascinating charge of reports that shows that premature 769 00:31:42,700 --> 00:31:44,299 that shows that premature jurisdictions have designated 770 00:31:44,299 --> 00:31:48,267 jurisdictions have designated domestically important system 771 00:31:48,267 --> 00:31:52,134 domestically important system important banks so-called. 772 00:32:25,767 --> 00:32:28,568 Is this to anything very 773 00:32:28,568 --> 00:32:30,700 Is this to anything very specific about the search but 774 00:32:30,700 --> 00:32:31,734 specific about the search but you’ll also see in the report 775 00:32:31,734 --> 00:32:34,000 you’ll also see in the report is that I mean just talking in 776 00:32:34,000 --> 00:32:35,200 is that I mean just talking in terms of men, it was not 777 00:32:35,200 --> 00:32:36,633 terms of men, it was not mandate to look at whether 778 00:32:36,633 --> 00:32:37,600 mandate to look at whether they’ve done it right or wrong. 779 00:32:37,600 --> 00:32:39,000 they’ve done it right or wrong. We just took what they’ve done 780 00:32:39,000 --> 00:32:40,267 We just took what they’ve done and then we work with that 781 00:32:40,267 --> 00:32:41,667 and then we work with that information, But what we’ve 782 00:32:41,667 --> 00:32:42,934 information, But what we’ve done and that’s interesting and 783 00:32:42,934 --> 00:32:44,267 done and that’s interesting and you can see some of the results 784 00:32:44,267 --> 00:32:47,367 you can see some of the results in the in the report we look at 785 00:32:47,367 --> 00:32:50,801 in the in the report we look at we have a group which is called 786 00:32:50,801 --> 00:32:51,602 we have a group which is called partially treated banks, so 787 00:32:51,602 --> 00:32:53,734 partially treated banks, so they may not be in the group of 788 00:32:53,734 --> 00:32:56,167 they may not be in the group of theives with clear difference 789 00:32:56,167 --> 00:32:57,934 theives with clear difference or a clear guidance as to the 790 00:32:57,934 --> 00:32:59,101 or a clear guidance as to the best of the buffers the 791 00:32:59,101 --> 00:33:00,899 best of the buffers the additional offers they may not 792 00:33:00,899 --> 00:33:05,401 additional offers they may not be. Of the sets of where the 793 00:33:05,401 --> 00:33:06,133 be. Of the sets of where the different across countries, but 794 00:33:06,133 --> 00:33:09,200 different across countries, but we with Framework applies but 795 00:33:09,200 --> 00:33:11,168 we with Framework applies but they also are the special 796 00:33:11,168 --> 00:33:12,602 they also are the special supervision and and they they 797 00:33:12,602 --> 00:33:16,467 supervision and and they they have to the other requirements 798 00:33:16,467 --> 00:33:17,667 have to the other requirements and regulations so these banks 799 00:33:17,667 --> 00:33:19,167 and regulations so these banks that you may have in mind might 800 00:33:19,167 --> 00:33:21,000 that you may have in mind might be in that integrity without 801 00:33:21,000 --> 00:33:23,368 be in that integrity without saying anything specific about 802 00:33:23,368 --> 00:33:25,602 saying anything specific about what these policies are and 803 00:33:25,602 --> 00:33:26,802 what these policies are and whether the designation process 804 00:33:26,802 --> 00:33:30,400 whether the designation process has been to to judge on this 805 00:33:30,400 --> 00:33:32,700 has been to to judge on this process and I I also have. 806 00:33:32,700 --> 00:33:34,100 process and I I also have. Additional question on 807 00:33:34,100 --> 00:33:35,501 Additional question on jurisdictions and designation, 808 00:33:35,501 --> 00:33:37,734 jurisdictions and designation, which is about the eurozone. I 809 00:33:37,734 --> 00:33:38,334 which is about the eurozone. I know there are plenty of 810 00:33:38,334 --> 00:33:40,601 know there are plenty of internal discussions of 811 00:33:40,601 --> 00:33:41,399 internal discussions of financial stability Board, and 812 00:33:41,399 --> 00:33:42,534 financial stability Board, and this is not in your hand, but 813 00:33:42,534 --> 00:33:45,700 this is not in your hand, but it’s still very striking for me 814 00:33:45,700 --> 00:33:46,335 it’s still very striking for me thinking of the euro zone 815 00:33:46,335 --> 00:33:48,066 thinking of the euro zone that’s having established a 816 00:33:48,066 --> 00:33:48,900 that’s having established a single resolution board a 817 00:33:48,900 --> 00:33:51,300 single resolution board a single resolution mechanism 818 00:33:51,300 --> 00:33:52,734 single resolution mechanism that yours doesn’t existence of 819 00:33:52,734 --> 00:33:54,267 that yours doesn’t existence of report. We only look at 820 00:33:54,267 --> 00:33:55,399 report. We only look at individual countries. Can you 821 00:33:55,399 --> 00:33:57,533 individual countries. Can you give us a bit of a sense of the 822 00:33:57,533 --> 00:33:58,901 give us a bit of a sense of the assessments here in the trade 823 00:33:58,901 --> 00:34:02,734 assessments here in the trade offs? Yeah. So that’s right, so 824 00:34:02,734 --> 00:34:05,100 offs? Yeah. So that’s right, so we’ve actually looked at the 825 00:34:05,100 --> 00:34:06,334 we’ve actually looked at the individual countries. so this 826 00:34:06,334 --> 00:34:07,667 individual countries. so this report is also not an 827 00:34:07,667 --> 00:34:09,167 report is also not an assessment of the resolution 828 00:34:09,167 --> 00:34:10,734 assessment of the resolution framework in Europe. maybe 829 00:34:10,734 --> 00:34:12,634 framework in Europe. maybe that’s our home, not just for 830 00:34:12,634 --> 00:34:13,633 that’s our home, not just for each individual country, but we 831 00:34:13,633 --> 00:34:15,033 each individual country, but we can, of course not take the big 832 00:34:15,033 --> 00:34:17,102 can, of course not take the big party and say okay. A lot of 833 00:34:17,102 --> 00:34:17,901 party and say okay. A lot of things have been flagged in 834 00:34:17,901 --> 00:34:18,968 things have been flagged in terms of gaps in terms of 835 00:34:18,968 --> 00:34:21,034 terms of gaps in terms of information and information 836 00:34:21,034 --> 00:34:22,468 information and information today. So what are the lessons 837 00:34:22,468 --> 00:34:23,500 today. So what are the lessons that we want to take to the 838 00:34:23,500 --> 00:34:25,066 that we want to take to the European debate? Maybe that’s 839 00:34:25,066 --> 00:34:26,967 European debate? Maybe that’s something for the US to take up 840 00:34:26,967 --> 00:34:28,567 something for the US to take up or there’s different forms So 841 00:34:28,567 --> 00:34:29,667 or there’s different forms So where we can discuss this and 842 00:34:29,667 --> 00:34:32,667 where we can discuss this and in Europe. The reason why I 843 00:34:32,667 --> 00:34:33,734 in Europe. The reason why I think it’s interesting to look 844 00:34:33,734 --> 00:34:34,934 think it’s interesting to look at the individual countries in 845 00:34:34,934 --> 00:34:36,167 at the individual countries in Europe and I don’t wanna go 846 00:34:36,167 --> 00:34:37,668 Europe and I don’t wanna go back to the to the challenges 847 00:34:37,668 --> 00:34:40,033 back to the to the challenges you do see that the progress 848 00:34:40,033 --> 00:34:41,133 you do see that the progress that’s been a lot of progress 849 00:34:41,133 --> 00:34:44,534 that’s been a lot of progress in the end we’ve implemented 850 00:34:44,534 --> 00:34:45,566 in the end we’ve implemented the reforms, but also there’s 851 00:34:45,566 --> 00:34:47,001 the reforms, but also there’s been differences across 852 00:34:47,001 --> 00:34:48,234 been differences across countries there. there’s a 853 00:34:48,234 --> 00:34:49,801 countries there. there’s a slight differences in how the 854 00:34:49,801 --> 00:34:51,202 slight differences in how the implementation is progress in 855 00:34:51,202 --> 00:34:52,534 implementation is progress in in terms of speed, so I think 856 00:34:52,534 --> 00:34:53,734 in terms of speed, so I think that is interesting again for 857 00:34:53,734 --> 00:34:56,167 that is interesting again for us to understand how effective 858 00:34:56,167 --> 00:34:57,700 us to understand how effective this forms of Europe have been 859 00:34:57,700 --> 00:34:58,934 this forms of Europe have been so maybe that’s a nice 860 00:34:58,934 --> 00:35:01,701 so maybe that’s a nice follow-up project for. Take it 861 00:35:01,701 --> 00:35:05,533 follow-up project for. Take it up the public if I may adding 862 00:35:05,533 --> 00:35:08,202 up the public if I may adding your own jurisdiction in 863 00:35:08,202 --> 00:35:09,467 your own jurisdiction in addition to the individual 864 00:35:09,467 --> 00:35:11,267 addition to the individual countries because you know a 865 00:35:11,267 --> 00:35:13,467 countries because you know a lot of people are looking at 866 00:35:13,467 --> 00:35:15,967 lot of people are looking at that. huh. I would have to go, 867 00:35:15,967 --> 00:35:16,802 that. huh. I would have to go, I mean we could do that we 868 00:35:16,802 --> 00:35:18,234 I mean we could do that we could group the country 869 00:35:18,234 --> 00:35:19,334 could group the country together, so that could be one 870 00:35:19,334 --> 00:35:22,601 together, so that could be one of the things to to to do in 871 00:35:22,601 --> 00:35:24,000 of the things to to to do in the in the follow-up study to 872 00:35:24,000 --> 00:35:25,402 the in the follow-up study to see whether any of the designs 873 00:35:25,402 --> 00:35:26,734 see whether any of the designs change and then that there 874 00:35:26,734 --> 00:35:28,468 change and then that there would be an interesting thing 875 00:35:28,468 --> 00:35:29,167 would be an interesting thing not to see what it was that 876 00:35:29,167 --> 00:35:30,534 not to see what it was that change. if we do that if we go 877 00:35:30,534 --> 00:35:32,034 change. if we do that if we go to countries together again, we 878 00:35:32,034 --> 00:35:34,601 to countries together again, we don’t the purpose of the report 879 00:35:34,601 --> 00:35:35,733 don’t the purpose of the report is not to say all of this is 880 00:35:35,733 --> 00:35:37,100 is not to say all of this is what Europe has done right or 881 00:35:37,100 --> 00:35:39,700 what Europe has done right or wrong, but but we need to get 882 00:35:39,700 --> 00:35:42,167 wrong, but but we need to get more to to to to the picture, 883 00:35:42,167 --> 00:35:42,900 more to to to to the picture, But all the I should say that 884 00:35:42,900 --> 00:35:45,200 But all the I should say that all the evidence is there. I 885 00:35:45,200 --> 00:35:46,466 all the evidence is there. I mean the the what we’ve done in 886 00:35:46,466 --> 00:35:50,134 mean the the what we’ve done in terms of a. 887 00:36:19,734 --> 00:36:23,034 Around the speed and 888 00:36:23,034 --> 00:36:23,767 Around the speed and effectiveness of the decision 889 00:36:23,767 --> 00:36:25,501 effectiveness of the decision making process that will be all 890 00:36:25,501 --> 00:36:27,501 making process that will be all of you and and then the 891 00:36:27,501 --> 00:36:31,234 of you and and then the question on resolution of 892 00:36:31,234 --> 00:36:31,967 question on resolution of medium-sized banks. I think 893 00:36:31,967 --> 00:36:33,334 medium-sized banks. I think maybe some of the cases that 894 00:36:33,334 --> 00:36:34,268 maybe some of the cases that person who asked the question 895 00:36:34,268 --> 00:36:36,000 person who asked the question I’d mine. I think some of these 896 00:36:36,000 --> 00:36:37,334 I’d mine. I think some of these cases don’t necessarily speak 897 00:36:37,334 --> 00:36:39,200 cases don’t necessarily speak to what’s the end state would 898 00:36:39,200 --> 00:36:39,968 to what’s the end state would look like I think we have to 899 00:36:39,968 --> 00:36:41,234 look like I think we have to bear in mind that this project 900 00:36:41,234 --> 00:36:43,867 bear in mind that this project started in 2015 so some of the 901 00:36:43,867 --> 00:36:45,334 started in 2015 so some of the cases we’ve seen that happen 902 00:36:45,334 --> 00:36:47,202 cases we’ve seen that happen just a few years after this we 903 00:36:47,202 --> 00:36:50,500 just a few years after this we undo on this journey so. yes, 904 00:36:50,500 --> 00:36:52,634 undo on this journey so. yes, for now, sometimes I think for 905 00:36:52,634 --> 00:36:53,701 for now, sometimes I think for investors is a little bit hard 906 00:36:53,701 --> 00:36:54,602 investors is a little bit hard to predict what the behavior 907 00:36:54,602 --> 00:36:55,967 to predict what the behavior would be in some cases or this 908 00:36:55,967 --> 00:36:58,802 would be in some cases or this has been in the past few years 909 00:36:58,802 --> 00:37:00,733 has been in the past few years but I don’t think that’s 910 00:37:00,733 --> 00:37:03,534 but I don’t think that’s something that would that a 911 00:37:03,534 --> 00:37:05,300 something that would that a certain plan of action two to 912 00:37:05,300 --> 00:37:07,002 certain plan of action two to three years time when all the 913 00:37:07,002 --> 00:37:09,634 three years time when all the things that have been under the 914 00:37:09,634 --> 00:37:10,867 things that have been under the decision-making process for 915 00:37:10,867 --> 00:37:13,534 decision-making process for instances as has been tackled 916 00:37:13,534 --> 00:37:14,868 instances as has been tackled as well or for some beers I’ve 917 00:37:14,868 --> 00:37:16,567 as well or for some beers I’ve been built by some of these 918 00:37:16,567 --> 00:37:19,668 been built by some of these entities. 919 00:37:20,600 --> 00:37:22,167 another question to you Alex, 920 00:37:22,167 --> 00:37:23,767 another question to you Alex, which is about trading 921 00:37:23,767 --> 00:37:25,101 which is about trading ceilings, there’s such a 922 00:37:25,101 --> 00:37:26,499 ceilings, there’s such a standard rating methodology and 923 00:37:26,499 --> 00:37:28,668 standard rating methodology and in a way that was my question 924 00:37:28,668 --> 00:37:30,101 in a way that was my question about the euro zone. so you you 925 00:37:30,101 --> 00:37:31,500 about the euro zone. so you you you, You told us that you were 926 00:37:31,500 --> 00:37:34,334 you, You told us that you were you had decided to remove some 927 00:37:34,334 --> 00:37:37,034 you had decided to remove some of the rating uplift, which is 928 00:37:37,034 --> 00:37:39,734 of the rating uplift, which is a way of saying government will 929 00:37:39,734 --> 00:37:42,267 a way of saying government will pay less if a Bank is failing. 930 00:37:42,267 --> 00:37:44,568 pay less if a Bank is failing. but traditionally agencies have 931 00:37:44,568 --> 00:37:46,502 but traditionally agencies have also applied rating ceilings, 932 00:37:46,502 --> 00:37:47,901 also applied rating ceilings, which basically means the Bank 933 00:37:47,901 --> 00:37:51,634 which basically means the Bank is not be more creditor and 934 00:37:51,634 --> 00:37:52,934 is not be more creditor and country in which it’s 935 00:37:52,934 --> 00:37:56,066 country in which it’s established. Boost generally 936 00:37:56,066 --> 00:37:57,968 established. Boost generally globally and in in the special 937 00:37:57,968 --> 00:37:59,034 globally and in in the special cases of Euro, can you give us 938 00:37:59,034 --> 00:38:01,201 cases of Euro, can you give us an update on how you’re sinking 939 00:38:01,201 --> 00:38:02,500 an update on how you’re sinking in terms of trading ceilings 940 00:38:02,500 --> 00:38:05,634 in terms of trading ceilings for banks? you’re absolutely 941 00:38:05,634 --> 00:38:07,100 for banks? you’re absolutely you’re perfectly right. That’s 942 00:38:07,100 --> 00:38:08,634 you’re perfectly right. That’s I used the word typically. it’s 943 00:38:08,634 --> 00:38:11,000 I used the word typically. it’s very important work typically 944 00:38:11,000 --> 00:38:13,100 very important work typically we think it’s rare for the 945 00:38:13,100 --> 00:38:14,401 we think it’s rare for the credit was best of the Bank to 946 00:38:14,401 --> 00:38:16,867 credit was best of the Bank to be higher than that’s of. it’s 947 00:38:16,867 --> 00:38:19,966 be higher than that’s of. it’s a main operation. that’s it 948 00:38:19,966 --> 00:38:22,167 a main operation. that’s it there are a few exceptions 949 00:38:22,167 --> 00:38:24,434 there are a few exceptions sometimes the exceptions 950 00:38:24,434 --> 00:38:26,000 sometimes the exceptions especially for banks that will 951 00:38:26,000 --> 00:38:27,468 especially for banks that will be extremely diversified and 952 00:38:27,468 --> 00:38:28,268 be extremely diversified and what we’re doing in those cases 953 00:38:28,268 --> 00:38:34,201 what we’re doing in those cases is we do a And take some really 954 00:38:34,201 --> 00:38:35,534 is we do a And take some really assumptions of what type of 955 00:38:35,534 --> 00:38:39,467 assumptions of what type of stress that would have to to to 956 00:38:39,467 --> 00:38:40,802 stress that would have to to to be exposed to in the event of a 957 00:38:40,802 --> 00:38:42,234 be exposed to in the event of a someone’s stress test and we 958 00:38:42,234 --> 00:38:44,801 someone’s stress test and we see if they believe that the 959 00:38:44,801 --> 00:38:46,167 see if they believe that the Bank could pass tests and in 960 00:38:46,167 --> 00:38:47,501 Bank could pass tests and in this case we could rates a Bank 961 00:38:47,501 --> 00:38:50,000 this case we could rates a Bank for instance, one or maybe some 962 00:38:50,000 --> 00:38:52,700 for instance, one or maybe some really rare cases two notches 963 00:38:52,700 --> 00:38:55,666 really rare cases two notches above, for instance, in the 964 00:38:55,666 --> 00:38:57,367 above, for instance, in the cases of life as well, we take 965 00:38:57,367 --> 00:39:01,234 cases of life as well, we take a lot into consideration. Of 966 00:39:01,234 --> 00:39:03,767 a lot into consideration. Of the ability to absorb a 967 00:39:03,767 --> 00:39:05,501 the ability to absorb a sovereign stress test so in 968 00:39:05,501 --> 00:39:07,134 sovereign stress test so in some cases as well on basis of 969 00:39:07,134 --> 00:39:10,500 some cases as well on basis of these buffers, we can have a 970 00:39:10,500 --> 00:39:15,101 these buffers, we can have a credit rating that’s slightly 971 00:39:17,000 --> 00:39:18,667 higher than sovereign, but by 972 00:39:18,667 --> 00:39:20,734 higher than sovereign, but by and large your rights these 973 00:39:20,734 --> 00:39:23,868 and large your rights these cases where 974 00:39:24,534 --> 00:39:25,567 rates above the spring already 975 00:39:25,567 --> 00:39:31,668 rates above the spring already to large and the 976 00:39:33,135 --> 00:39:36,133 oxen 977 00:39:37,734 --> 00:39:40,934 would be by 978 00:39:46,534 --> 00:39:49,567 what 979 00:39:50,467 --> 00:39:53,634 about the euro 980 00:39:56,966 --> 00:40:01,067 I mean, I think you know it’s a 981 00:40:01,067 --> 00:40:04,067 I mean, I think you know it’s a large 982 00:40:05,367 --> 00:40:08,601 Bank in the in 983 00:40:13,034 --> 00:40:15,468 the country, which has plenty 984 00:40:15,468 --> 00:40:16,833 the country, which has plenty of problems, but the Bank has a 985 00:40:16,833 --> 00:40:17,734 of problems, but the Bank has a lot of operations outside how 986 00:40:17,734 --> 00:40:18,534 lot of operations outside how do you think? into specific 987 00:40:18,534 --> 00:40:19,267 do you think? into specific cases of your zone where many 988 00:40:19,267 --> 00:40:20,000 cases of your zone where many things are, you know special. 989 00:40:20,000 --> 00:40:20,802 things are, you know special. Yeah, we still attached the 990 00:40:20,802 --> 00:40:21,868 Yeah, we still attached the Bank to countries as opposed to 991 00:40:21,868 --> 00:40:22,802 Bank to countries as opposed to the eurozone for now so we if 992 00:40:22,802 --> 00:40:23,899 the eurozone for now so we if we assume a large it’s a lot of 993 00:40:23,899 --> 00:40:24,667 we assume a large it’s a lot of countries we don’t consider a 994 00:40:24,667 --> 00:40:25,534 countries we don’t consider a euros and sitting as such that 995 00:40:25,534 --> 00:40:26,134 euros and sitting as such that we would look at for instance, 996 00:40:26,134 --> 00:40:26,899 we would look at for instance, what would be defaults of the 997 00:40:26,899 --> 00:40:27,734 what would be defaults of the home jurisdiction or Some other 998 00:40:27,734 --> 00:40:28,534 home jurisdiction or Some other countries that exposed to what 999 00:40:28,534 --> 00:40:29,334 countries that exposed to what would that mean if they can 1000 00:40:29,334 --> 00:40:30,000 would that mean if they can pass for instance, the stress 1001 00:40:30,000 --> 00:40:30,433 pass for instance, the stress Associated with a seven 1002 00:40:30,433 --> 00:40:31,334 Associated with a seven defaults of the country, for 1003 00:40:31,334 --> 00:40:31,967 defaults of the country, for instance, where they are, We 1004 00:40:31,967 --> 00:40:32,667 instance, where they are, We could raise that entity above 1005 00:40:32,667 --> 00:40:33,468 could raise that entity above that country, but we don’t 1006 00:40:33,468 --> 00:40:34,000 that country, but we don’t consider the years and as 1007 00:40:34,000 --> 00:40:34,802 consider the years and as itself as a as a steal but for 1008 00:40:34,802 --> 00:40:35,567 itself as a as a steal but for the purpose of for instance, 1009 00:40:35,567 --> 00:40:36,267 the purpose of for instance, Ali and being able to constrain 1010 00:40:36,267 --> 00:40:37,002 Ali and being able to constrain those like to raise against 1011 00:40:37,002 --> 00:40:37,601 those like to raise against your both, it’s of domicile and 1012 00:40:37,601 --> 00:40:38,101 your both, it’s of domicile and the. And in general, just 1013 00:40:38,101 --> 00:40:38,801 the. And in general, just because it will have a bearing 1014 00:40:38,801 --> 00:40:39,868 because it will have a bearing on our assessment of the liquid 1015 00:40:39,868 --> 00:40:40,334 on our assessment of the liquid that might be available to. 1016 00:40:40,334 --> 00:40:41,068 that might be available to. It’s our other supports that 1017 00:40:41,068 --> 00:40:44,266 It’s our other supports that happen coming from outside they 1018 00:40:44,266 --> 00:40:47,401 happen coming from outside they come up to what we can assist 1019 00:40:47,401 --> 00:40:48,000 come up to what we can assist to start on the control of 1020 00:40:48,000 --> 00:40:49,100 to start on the control of themselves. What would it take 1021 00:40:49,100 --> 00:40:51,533 themselves. What would it take in terms of a legislative 1022 00:40:51,533 --> 00:40:52,366 in terms of a legislative reforms and computing the 1023 00:40:52,366 --> 00:40:53,733 reforms and computing the banking Union for you to 1024 00:40:53,733 --> 00:40:55,734 banking Union for you to abandon this country by country 1025 00:40:55,734 --> 00:40:58,601 abandon this country by country of approaching into your zone? 1026 00:40:58,601 --> 00:41:02,534 of approaching into your zone? The question I think it will 1027 00:41:02,534 --> 00:41:03,868 The question I think it will still I mean it’s it’s 1028 00:41:03,868 --> 00:41:04,433 still I mean it’s it’s something that’s I’m not 1029 00:41:04,433 --> 00:41:06,801 something that’s I’m not saying. I think we’ve learned 1030 00:41:06,801 --> 00:41:09,267 saying. I think we’ve learned to never say never especially 1031 00:41:09,267 --> 00:41:11,768 to never say never especially the workings market for 20 1032 00:41:11,768 --> 00:41:15,501 the workings market for 20 years but then I need to be 1033 00:41:15,501 --> 00:41:18,133 years but then I need to be more well who makes the 1034 00:41:18,133 --> 00:41:19,801 more well who makes the decision is that is there a 1035 00:41:19,801 --> 00:41:22,434 decision is that is there a smooth predictable and sensual 1036 00:41:22,434 --> 00:41:25,133 smooth predictable and sensual decision making process legal 1037 00:41:25,133 --> 00:41:27,634 decision making process legal framework and do you have a 1038 00:41:27,634 --> 00:41:31,567 framework and do you have a homogenous for instance, 1039 00:41:31,567 --> 00:41:35,168 homogenous for instance, insolvency of framework. and is 1040 00:41:35,168 --> 00:41:38,100 insolvency of framework. and is there a utilization of some of 1041 00:41:38,100 --> 00:41:40,701 there a utilization of some of the support mechanisms of funds 1042 00:41:40,701 --> 00:41:43,567 the support mechanisms of funds across. that’s what is the 1043 00:41:43,567 --> 00:41:46,167 across. that’s what is the nature of the deposit guarantee 1044 00:41:46,167 --> 00:41:47,968 nature of the deposit guarantee scheme. is it again a 1045 00:41:47,968 --> 00:41:50,100 scheme. is it again a homogenous and so it is 1046 00:41:50,100 --> 00:41:51,902 homogenous and so it is possible but we wouldn’t need 1047 00:41:51,902 --> 00:41:54,267 possible but we wouldn’t need to see that there is probably a 1048 00:41:54,267 --> 00:41:56,734 to see that there is probably a compilation of some of these 1049 00:41:56,734 --> 00:41:59,034 compilation of some of these reselling and and of a 1050 00:41:59,034 --> 00:42:00,401 reselling and and of a efficient decision-making 1051 00:42:00,401 --> 00:42:03,534 efficient decision-making process. So that’s. Interesting 1052 00:42:03,534 --> 00:42:05,202 process. So that’s. Interesting and I think some things that 1053 00:42:05,202 --> 00:42:07,801 and I think some things that the policy makers should listen 1054 00:42:07,801 --> 00:42:09,401 the policy makers should listen to in terms of the ongoing 1055 00:42:09,401 --> 00:42:10,699 to in terms of the ongoing debates about completing the 1056 00:42:10,699 --> 00:42:12,201 debates about completing the banking Union any comments from 1057 00:42:12,201 --> 00:42:14,934 banking Union any comments from you on that well, it was a very 1058 00:42:14,934 --> 00:42:15,801 you on that well, it was a very good explanation of why we’re 1059 00:42:15,801 --> 00:42:18,168 good explanation of why we’re not treating the euro area as a 1060 00:42:18,168 --> 00:42:20,401 not treating the euro area as a as a country. so yeah, it’s not 1061 00:42:20,401 --> 00:42:22,601 as a country. so yeah, it’s not that we have a discussion and 1062 00:42:22,601 --> 00:42:24,101 that we have a discussion and and in much detail but yeah, no 1063 00:42:24,101 --> 00:42:25,401 and in much detail but yeah, no I I fully agree and I also 1064 00:42:25,401 --> 00:42:27,267 I I fully agree and I also learned a lot of I mean this is 1065 00:42:27,267 --> 00:42:27,934 learned a lot of I mean this is I think something that 1066 00:42:27,934 --> 00:42:29,168 I think something that sometimes overlooked when we 1067 00:42:29,168 --> 00:42:30,801 sometimes overlooked when we think about this in the bigger 1068 00:42:30,801 --> 00:42:34,133 think about this in the bigger bigger policy. 1069 00:43:02,101 --> 00:43:03,967 So I have a number of questions 1070 00:43:03,967 --> 00:43:06,033 So I have a number of questions about the of financial 1071 00:43:06,033 --> 00:43:07,867 about the of financial stability and let’s take a few 1072 00:43:07,867 --> 00:43:11,166 stability and let’s take a few of them so, for example, my pee 1073 00:43:11,166 --> 00:43:13,666 of them so, for example, my pee on the door is asking how about 1074 00:43:13,666 --> 00:43:15,468 on the door is asking how about system crisis’ to ERD framework 1075 00:43:15,468 --> 00:43:17,267 system crisis’ to ERD framework be used in case of systemic 1076 00:43:17,267 --> 00:43:18,401 be used in case of systemic crisis. That’s your question 1077 00:43:18,401 --> 00:43:19,567 crisis. That’s your question specifically for the European 1078 00:43:19,567 --> 00:43:22,034 specifically for the European Union. is contagion risk of 1079 00:43:22,034 --> 00:43:23,167 Union. is contagion risk of bailable that the problem 1080 00:43:23,167 --> 00:43:24,634 bailable that the problem between European banks, but I 1081 00:43:24,634 --> 00:43:27,202 between European banks, but I think beyond to European Union. 1082 00:43:27,202 --> 00:43:29,068 think beyond to European Union. there’s a general question 1083 00:43:29,068 --> 00:43:31,301 there’s a general question about a resolution framework as 1084 00:43:31,301 --> 00:43:34,434 about a resolution framework as it has been. Under FSB 1085 00:43:34,434 --> 00:43:38,000 it has been. Under FSB principles really can be used 1086 00:43:38,000 --> 00:43:40,268 principles really can be used beyond. crowded sharks and 1087 00:43:40,268 --> 00:43:41,968 beyond. crowded sharks and whether you know if people have 1088 00:43:41,968 --> 00:43:43,068 whether you know if people have in mind what’s happening to the 1089 00:43:43,068 --> 00:43:44,900 in mind what’s happening to the US in Tucson to guy you’re a 1090 00:43:44,900 --> 00:43:48,168 US in Tucson to guy you’re a good dog and basically when 1091 00:43:48,168 --> 00:43:50,000 good dog and basically when there is doubt set extents to 1092 00:43:50,000 --> 00:43:51,334 there is doubt set extents to an entire system and not just 1093 00:43:51,334 --> 00:43:54,133 an entire system and not just one Bank can you really believe 1094 00:43:54,133 --> 00:43:55,668 one Bank can you really believe that she will be bailed in and 1095 00:43:55,668 --> 00:43:56,868 that she will be bailed in and that things will move, 1096 00:43:56,868 --> 00:43:58,400 that things will move, according to plan when we 1097 00:43:58,400 --> 00:43:59,967 according to plan when we actually seeing your NXT’s, 1098 00:43:59,967 --> 00:44:00,934 actually seeing your NXT’s, that’s just isn’t even 1099 00:44:00,934 --> 00:44:05,801 that’s just isn’t even happening in. Of problems of 1100 00:44:05,801 --> 00:44:07,802 happening in. Of problems of medium-sized banks so far so so 1101 00:44:07,802 --> 00:44:10,034 medium-sized banks so far so so so is there is there really a 1102 00:44:10,034 --> 00:44:11,601 so is there is there really a reason to believe that in a 1103 00:44:11,601 --> 00:44:15,133 reason to believe that in a systemic crisis situation? a 1104 00:44:15,133 --> 00:44:17,833 systemic crisis situation? a framework that has predictive 1105 00:44:17,833 --> 00:44:21,800 framework that has predictive power of. Yeah? Yeah. So ask a 1106 00:44:21,800 --> 00:44:22,402 power of. Yeah? Yeah. So ask a question and definitely I mean 1107 00:44:22,402 --> 00:44:23,868 question and definitely I mean it hasn’t been in the context 1108 00:44:23,868 --> 00:44:25,634 it hasn’t been in the context of the epidemic, but it’s 1109 00:44:25,634 --> 00:44:27,401 of the epidemic, but it’s obviously a question that also 1110 00:44:27,401 --> 00:44:30,000 obviously a question that also comes up and in the 1111 00:44:30,000 --> 00:44:30,934 comes up and in the circumstances that come back to 1112 00:44:30,934 --> 00:44:32,000 circumstances that come back to that in a second I would like 1113 00:44:32,000 --> 00:44:33,200 that in a second I would like to give the the more general 1114 00:44:33,200 --> 00:44:35,167 to give the the more general answer and. Talk about the 1115 00:44:35,167 --> 00:44:38,000 answer and. Talk about the situation so the more general 1116 00:44:38,000 --> 00:44:39,868 situation so the more general answer is that I think my 1117 00:44:39,868 --> 00:44:42,034 answer is that I think my thinking about what’s the 1118 00:44:42,034 --> 00:44:43,666 thinking about what’s the effectiveness of this framework 1119 00:44:43,666 --> 00:44:45,634 effectiveness of this framework for systemic risk and for 1120 00:44:45,634 --> 00:44:47,602 for systemic risk and for systemic crisis starts actually 1121 00:44:47,602 --> 00:44:48,901 systemic crisis starts actually with the growing concerns 1122 00:44:48,901 --> 00:44:51,733 with the growing concerns starts with does the framework 1123 00:44:51,733 --> 00:44:53,734 starts with does the framework contribute to reducing the 1124 00:44:53,734 --> 00:44:55,601 contribute to reducing the probability of the crisis and 1125 00:44:55,601 --> 00:44:57,334 probability of the crisis and the capital for in a crisis. so 1126 00:44:57,334 --> 00:44:58,534 the capital for in a crisis. so that was a bit of a chart and 1127 00:44:58,534 --> 00:45:00,133 that was a bit of a chart and show at the beginning and what 1128 00:45:00,133 --> 00:45:02,000 show at the beginning and what we’re seeing is that yes, all 1129 00:45:02,000 --> 00:45:03,034 we’re seeing is that yes, all the indicators are moving into 1130 00:45:03,034 --> 00:45:06,700 the indicators are moving into the right direction. 1131 00:45:33,800 --> 00:45:35,468 JC realtors have to judge well 1132 00:45:35,468 --> 00:45:38,600 JC realtors have to judge well if they do and if they deal 1133 00:45:38,600 --> 00:45:40,534 if they do and if they deal with the banks and financial 1134 00:45:40,534 --> 00:45:42,000 with the banks and financial stability with precautions and 1135 00:45:42,000 --> 00:45:43,402 stability with precautions and I think that’s what also the 1136 00:45:43,402 --> 00:45:45,101 I think that’s what also the framework that we’re looking at 1137 00:45:45,101 --> 00:45:46,434 framework that we’re looking at looking at to get some 1138 00:45:46,434 --> 00:45:48,267 looking at to get some flexibility. So it’s not that 1139 00:45:48,267 --> 00:45:49,500 flexibility. So it’s not that again. It’s not a zero one 1140 00:45:49,500 --> 00:45:52,234 again. It’s not a zero one word. It’s it’s just it’s it’s 1141 00:45:52,234 --> 00:45:53,968 word. It’s it’s just it’s it’s about reducing probabilities 1142 00:45:53,968 --> 00:45:56,066 about reducing probabilities for reducing capital for once 1143 00:45:56,066 --> 00:45:57,567 for reducing capital for once we get into a situation that we 1144 00:45:57,567 --> 00:45:59,068 we get into a situation that we haven’t foreseen that needs to 1145 00:45:59,068 --> 00:46:01,802 haven’t foreseen that needs to be some flexibility get the 1146 00:46:01,802 --> 00:46:03,101 be some flexibility get the report wouldn’t say anything 1147 00:46:03,101 --> 00:46:05,334 report wouldn’t say anything about what specific authorities 1148 00:46:05,334 --> 00:46:06,133 about what specific authorities have to do so that’s always 1149 00:46:06,133 --> 00:46:09,233 have to do so that’s always gonna be a judgement. 1150 00:46:09,233 --> 00:46:11,667 gonna be a judgement. Authorities have to take and if 1151 00:46:11,667 --> 00:46:13,200 Authorities have to take and if anything the system has moved 1152 00:46:13,200 --> 00:46:15,834 anything the system has moved more towards the versus the 1153 00:46:15,834 --> 00:46:17,233 more towards the versus the bailouts. Yeah, but I mean I 1154 00:46:17,233 --> 00:46:19,734 bailouts. Yeah, but I mean I guess many of our audiences are 1155 00:46:19,734 --> 00:46:20,499 guess many of our audiences are asking you know the system was 1156 00:46:20,499 --> 00:46:22,600 asking you know the system was almost entirely bailout. We’re 1157 00:46:22,600 --> 00:46:25,534 almost entirely bailout. We’re still seeing. almost systematic 1158 00:46:25,534 --> 00:46:27,734 still seeing. almost systematic day out in cases of chronic 1159 00:46:27,734 --> 00:46:30,568 day out in cases of chronic pain problems so it may have 1160 00:46:30,568 --> 00:46:32,834 pain problems so it may have moved incrementally into the 1161 00:46:32,834 --> 00:46:33,567 moved incrementally into the direction of Bain, but that’s 1162 00:46:33,567 --> 00:46:35,634 direction of Bain, but that’s still very far from bailing 1163 00:46:35,634 --> 00:46:37,567 still very far from bailing being a baseline scenario right 1164 00:46:37,567 --> 00:46:40,000 being a baseline scenario right so specifically in the context 1165 00:46:40,000 --> 00:46:42,734 so specifically in the context of covid- 19 very bluntly. 1166 00:46:42,734 --> 00:46:45,334 of covid- 19 very bluntly. Questions that was asked on is 1167 00:46:45,334 --> 00:46:47,668 Questions that was asked on is it possible to imagine any 1168 00:46:47,668 --> 00:46:52,234 it possible to imagine any resolution during the 19 period 1169 00:46:52,234 --> 00:46:54,234 resolution during the 19 period or or is it just something that 1170 00:46:54,234 --> 00:46:55,600 or or is it just something that simply won’t happen with these 1171 00:46:55,600 --> 00:46:59,067 simply won’t happen with these things. just 11 that’s going 1172 00:46:59,067 --> 00:47:00,233 things. just 11 that’s going back to the Pre and then I come 1173 00:47:00,233 --> 00:47:02,866 back to the Pre and then I come to you to your question when 1174 00:47:02,866 --> 00:47:04,167 to you to your question when the period that we’re looking 1175 00:47:04,167 --> 00:47:06,167 the period that we’re looking at here So appeared over what 1176 00:47:06,167 --> 00:47:06,966 at here So appeared over what we do. The variation is of 1177 00:47:06,966 --> 00:47:08,100 we do. The variation is of course also been a period with 1178 00:47:08,100 --> 00:47:10,233 course also been a period with a very benign macro 1179 00:47:10,233 --> 00:47:12,000 a very benign macro environment. So again we’ve 1180 00:47:12,000 --> 00:47:13,601 environment. So again we’ve discussed the cases that have 1181 00:47:13,601 --> 00:47:15,001 discussed the cases that have happened and nobody’s really 1182 00:47:15,001 --> 00:47:16,234 happened and nobody’s really happy about them, but I think 1183 00:47:16,234 --> 00:47:17,968 happy about them, but I think we need to take that into 1184 00:47:17,968 --> 00:47:21,134 we need to take that into consideration. 1185 00:48:18,434 --> 00:48:19,334 Protect the stability of the 1186 00:48:19,334 --> 00:48:21,734 Protect the stability of the system does any of us know 1187 00:48:21,734 --> 00:48:23,334 system does any of us know what’s happening Next is any of 1188 00:48:23,334 --> 00:48:27,334 what’s happening Next is any of us know how the crisis evolve 1189 00:48:27,334 --> 00:48:29,967 us know how the crisis evolve and and and what letters and I 1190 00:48:29,967 --> 00:48:31,534 and and and what letters and I need it now, so we basically 1191 00:48:31,534 --> 00:48:33,602 need it now, so we basically said when when we can stay here 1192 00:48:33,602 --> 00:48:34,766 said when when we can stay here with this free report about the 1193 00:48:34,766 --> 00:48:37,167 with this free report about the crisis without having done any 1194 00:48:37,167 --> 00:48:37,967 crisis without having done any analytical work here is to say 1195 00:48:37,967 --> 00:48:40,402 analytical work here is to say yes, this is went to the being 1196 00:48:40,402 --> 00:48:42,734 yes, this is went to the being more robust. That alone is 1197 00:48:42,734 --> 00:48:44,134 more robust. That alone is certainly not enough, but it is 1198 00:48:44,134 --> 00:48:45,699 certainly not enough, but it is all these accompanying policy 1199 00:48:45,699 --> 00:48:46,368 all these accompanying policy matters that are not also 1200 00:48:46,368 --> 00:48:48,801 matters that are not also being. And what we can say is 1201 00:48:48,801 --> 00:48:52,167 being. And what we can say is that. whatever happens in 1202 00:48:52,167 --> 00:48:52,933 that. whatever happens in individual countries individual 1203 00:48:52,933 --> 00:48:54,666 individual countries individual systems, the authorities have 1204 00:48:54,666 --> 00:48:56,500 systems, the authorities have not more options to deal with 1205 00:48:56,500 --> 00:48:57,834 not more options to deal with this with this cases that 1206 00:48:57,834 --> 00:48:59,134 this with this cases that happen, I think that’s a that’s 1207 00:48:59,134 --> 00:49:00,700 happen, I think that’s a that’s a pretty strong message that 1208 00:49:00,700 --> 00:49:02,667 a pretty strong message that disruptions are there how 1209 00:49:02,667 --> 00:49:04,167 disruptions are there how they’re being used for other 1210 00:49:04,167 --> 00:49:06,634 they’re being used for other circumstances? I’m not able to 1211 00:49:06,634 --> 00:49:08,700 circumstances? I’m not able to to to forecast and make any 1212 00:49:08,700 --> 00:49:09,833 to to forecast and make any statements. I think none of us 1213 00:49:09,833 --> 00:49:11,567 statements. I think none of us can actually well. There are a 1214 00:49:11,567 --> 00:49:13,802 can actually well. There are a number of questions on do about 1215 00:49:13,802 --> 00:49:15,267 number of questions on do about individual jurisdictions, for 1216 00:49:15,267 --> 00:49:16,766 individual jurisdictions, for example, about the US about how 1217 00:49:16,766 --> 00:49:18,634 example, about the US about how to report should say more 1218 00:49:18,634 --> 00:49:19,301 to report should say more things about individual 1219 00:49:19,301 --> 00:49:20,634 things about individual jurisdictions and I’m not going 1220 00:49:20,634 --> 00:49:21,900 jurisdictions and I’m not going to relay those because I know 1221 00:49:21,900 --> 00:49:24,267 to relay those because I know what your answer. Which is the 1222 00:49:24,267 --> 00:49:25,667 what your answer. Which is the report is not about individual 1223 00:49:25,667 --> 00:49:27,233 report is not about individual jurisdictions, and that’s how 1224 00:49:27,233 --> 00:49:29,868 jurisdictions, and that’s how SSV Works so my apologies for 1225 00:49:29,868 --> 00:49:31,134 SSV Works so my apologies for those in the audience who ask 1226 00:49:31,134 --> 00:49:32,666 those in the audience who ask those questions. but I 1227 00:49:32,666 --> 00:49:35,267 those questions. but I encourage everybody actually to 1228 00:49:35,267 --> 00:49:36,801 encourage everybody actually to respond to the consultation and 1229 00:49:36,801 --> 00:49:39,167 respond to the consultation and indeed there, for example, one 1230 00:49:39,167 --> 00:49:41,868 indeed there, for example, one note on the door saying well 1231 00:49:41,868 --> 00:49:44,134 note on the door saying well the final report will more 1232 00:49:44,134 --> 00:49:44,802 the final report will more distinctions between 1233 00:49:44,802 --> 00:49:46,633 distinctions between jurisdictions progress EG US 1234 00:49:46,633 --> 00:49:48,934 jurisdictions progress EG US versus China. this is important 1235 00:49:48,934 --> 00:49:50,933 versus China. this is important for investors. so so so that 1236 00:49:50,933 --> 00:49:56,134 for investors. so so so that feedback to the. To the report 1237 00:49:56,134 --> 00:49:57,667 feedback to the. To the report and I encourage you to do it at 1238 00:49:57,667 --> 00:50:00,968 and I encourage you to do it at the SSD at the FSB aloud 1239 00:50:00,968 --> 00:50:03,167 the SSD at the FSB aloud reminded us and by the way if 1240 00:50:03,167 --> 00:50:04,701 reminded us and by the way if you’re worried about hearing a 1241 00:50:04,701 --> 00:50:07,467 you’re worried about hearing a fighter planes making noise in 1242 00:50:07,467 --> 00:50:09,001 fighter planes making noise in my background is this is 1243 00:50:09,001 --> 00:50:10,234 my background is this is because I’m in Paris and there 1244 00:50:10,234 --> 00:50:12,601 because I’m in Paris and there is some rehearsal before the 1245 00:50:12,601 --> 00:50:14,801 is some rehearsal before the fourteenth of July. it’s not 1246 00:50:14,801 --> 00:50:16,934 fourteenth of July. it’s not World War three and there’s a 1247 00:50:16,934 --> 00:50:18,267 World War three and there’s a question, however, is that I 1248 00:50:18,267 --> 00:50:23,134 question, however, is that I will relay which is is is which 1249 00:50:23,134 --> 00:50:24,267 will relay which is is is which is about the current 1250 00:50:24,267 --> 00:50:25,767 is about the current circumstances of Europe into 1251 00:50:25,767 --> 00:50:30,234 circumstances of Europe into context of 19. so Asking ATF 1252 00:50:30,234 --> 00:50:32,901 context of 19. so Asking ATF seems some political fracture 1253 00:50:32,901 --> 00:50:34,335 seems some political fracture between EU States as part of 1254 00:50:34,335 --> 00:50:36,868 between EU States as part of the 19 reaction. Does this 1255 00:50:36,868 --> 00:50:38,034 the 19 reaction. Does this concern you regarding the 1256 00:50:38,034 --> 00:50:39,602 concern you regarding the political alignment to really 1257 00:50:39,602 --> 00:50:42,434 political alignment to really test to be to fail so so maybe 1258 00:50:42,434 --> 00:50:44,700 test to be to fail so so maybe a word on this also Alexander 1259 00:50:44,700 --> 00:50:48,834 a word on this also Alexander but tell you first. 1260 00:50:49,067 --> 00:50:50,567 So I was a little bit 1261 00:50:50,567 --> 00:50:52,434 So I was a little bit distracted because I’ve I’ve 1262 00:50:52,434 --> 00:50:53,867 distracted because I’ve I’ve heard all sorts in the in the 1263 00:50:53,867 --> 00:50:54,967 heard all sorts in the in the in the back of repeat the 1264 00:50:54,967 --> 00:50:57,334 in the back of repeat the question or I almost started 1265 00:50:57,334 --> 00:50:58,802 question or I almost started and I parts of it and that 1266 00:50:58,802 --> 00:51:00,934 and I parts of it and that story about the fighter jets 1267 00:51:00,934 --> 00:51:02,801 story about the fighter jets and the question is about 1268 00:51:02,801 --> 00:51:05,068 and the question is about political fractures linked to 1269 00:51:05,068 --> 00:51:07,934 political fractures linked to the covid-. 19 reaction between 1270 00:51:07,934 --> 00:51:11,600 the covid-. 19 reaction between EU member States and whether 1271 00:51:11,600 --> 00:51:13,034 EU member States and whether this concerns you regarding the 1272 00:51:13,034 --> 00:51:14,401 this concerns you regarding the political alignment to really 1273 00:51:14,401 --> 00:51:16,067 political alignment to really test to be to fail and the way 1274 00:51:16,067 --> 00:51:17,633 test to be to fail and the way the question was worded, which 1275 00:51:17,633 --> 00:51:19,867 the question was worded, which is really you know so it’s 1276 00:51:19,867 --> 00:51:21,267 is really you know so it’s basically a political fracture, 1277 00:51:21,267 --> 00:51:22,601 basically a political fracture, but you can get to observing 1278 00:51:22,601 --> 00:51:25,467 but you can get to observing and of course I’m Question not 1279 00:51:25,467 --> 00:51:26,834 and of course I’m Question not just as a representative. a 1280 00:51:26,834 --> 00:51:29,968 just as a representative. a little bit about your capacity. 1281 00:51:29,968 --> 00:51:33,700 little bit about your capacity. Okay so let me first 22 things 1282 00:51:33,700 --> 00:51:34,902 Okay so let me first 22 things because you mentioned all the 1283 00:51:34,902 --> 00:51:36,034 because you mentioned all the questions that are coming in on 1284 00:51:36,034 --> 00:51:38,634 questions that are coming in on individual countries, just like 1285 00:51:38,634 --> 00:51:41,334 individual countries, just like Nicholas said, Give feedback to 1286 00:51:41,334 --> 00:51:42,734 Nicholas said, Give feedback to the to the FSB and and the 1287 00:51:42,734 --> 00:51:44,267 the to the FSB and and the feedback. This is a long 1288 00:51:44,267 --> 00:51:45,567 feedback. This is a long report. It’s a long technical 1289 00:51:45,567 --> 00:51:46,634 report. It’s a long technical appendix, so the feedback 1290 00:51:46,634 --> 00:51:47,934 appendix, so the feedback doesn’t have to cover all the 1291 00:51:47,934 --> 00:51:49,501 doesn’t have to cover all the ground, but you can focus on 1292 00:51:49,501 --> 00:51:50,933 ground, but you can focus on the questions that are most 1293 00:51:50,933 --> 00:51:52,200 the questions that are most interesting to to to you. Send 1294 00:51:52,200 --> 00:51:53,667 interesting to to to you. Send us evidence that we should 1295 00:51:53,667 --> 00:51:54,868 us evidence that we should consider so we will take all 1296 00:51:54,868 --> 00:51:56,468 consider so we will take all that on board. so it’s not like 1297 00:51:56,468 --> 00:51:58,234 that on board. so it’s not like we’re not taking evidence. 1298 00:51:58,234 --> 00:51:59,801 we’re not taking evidence. Individual countries so we also 1299 00:51:59,801 --> 00:52:01,634 Individual countries so we also have some countries that 1300 00:52:01,634 --> 00:52:02,334 have some countries that actually in the in the 1301 00:52:02,334 --> 00:52:03,634 actually in the in the background, but we wouldn’t 1302 00:52:03,634 --> 00:52:05,202 background, but we wouldn’t make any policy statements, but 1303 00:52:05,202 --> 00:52:06,468 make any policy statements, but we’re also very transparent 1304 00:52:06,468 --> 00:52:08,534 we’re also very transparent about the resolution reforms 1305 00:52:08,534 --> 00:52:11,967 about the resolution reforms which our countries that have 1306 00:52:11,967 --> 00:52:12,699 which our countries that have progress in some of this on 1307 00:52:12,699 --> 00:52:15,167 progress in some of this on your broader question about the 1308 00:52:15,167 --> 00:52:19,334 your broader question about the I would say lessons that I’ve 1309 00:52:19,334 --> 00:52:20,801 I would say lessons that I’ve drawn from the crisis. Clearly 1310 00:52:20,801 --> 00:52:22,668 drawn from the crisis. Clearly we are not speaking as still as 1311 00:52:22,668 --> 00:52:23,834 we are not speaking as still as the chair of this of this group 1312 00:52:23,834 --> 00:52:26,401 the chair of this of this group and I in my own capacity. So I 1313 00:52:26,401 --> 00:52:30,566 and I in my own capacity. So I think I’m I mean 1314 00:52:30,833 --> 00:52:31,333 generally of course are 1315 00:52:31,333 --> 00:52:31,902 generally of course are extremely difficult and and we 1316 00:52:31,902 --> 00:52:32,568 extremely difficult and and we don’t know how things are going 1317 00:52:32,568 --> 00:52:33,499 don’t know how things are going to go, but I’m actually quite 1318 00:52:33,499 --> 00:52:35,600 to go, but I’m actually quite happy. Policy response that 1319 00:52:35,600 --> 00:52:37,668 happy. Policy response that we’re seeing in Europe right 1320 00:52:37,668 --> 00:52:39,433 we’re seeing in Europe right now, so we’ve recently issued 1321 00:52:39,433 --> 00:52:43,467 now, so we’ve recently issued also a small opinion piece with 1322 00:52:43,467 --> 00:52:46,634 also a small opinion piece with the my colleagues and from the 1323 00:52:46,634 --> 00:52:49,335 the my colleagues and from the pedal and the BS, we’re saying 1324 00:52:49,335 --> 00:52:50,201 pedal and the BS, we’re saying that of course, a lot of 1325 00:52:50,201 --> 00:52:51,566 that of course, a lot of decisions that have to be taken 1326 00:52:51,566 --> 00:52:53,966 decisions that have to be taken out are beyond the mandate of 1327 00:52:53,966 --> 00:52:55,233 out are beyond the mandate of Central banks so first and 1328 00:52:55,233 --> 00:52:56,733 Central banks so first and foremost, we’re we’re dealing 1329 00:52:56,733 --> 00:52:58,001 foremost, we’re we’re dealing with health issues and this is 1330 00:52:58,001 --> 00:52:59,834 with health issues and this is you know far far away from from 1331 00:52:59,834 --> 00:53:01,701 you know far far away from from such mandates, but there’s 1332 00:53:01,701 --> 00:53:02,234 such mandates, but there’s there’s a lot of important 1333 00:53:02,234 --> 00:53:04,634 there’s a lot of important reasons why we need coordinated 1334 00:53:04,634 --> 00:53:07,234 reasons why we need coordinated policy responses and what I’m 1335 00:53:07,234 --> 00:53:10,233 policy responses and what I’m seeing so far is of course we. 1336 00:53:10,233 --> 00:53:11,734 seeing so far is of course we. Lot of discussions, but I’m 1337 00:53:11,734 --> 00:53:12,867 Lot of discussions, but I’m seeing also that there’s a lot 1338 00:53:12,867 --> 00:53:15,068 seeing also that there’s a lot of will to come together and 1339 00:53:15,068 --> 00:53:16,802 of will to come together and find common sense solutions and 1340 00:53:16,802 --> 00:53:19,402 find common sense solutions and I think that is that is that is 1341 00:53:19,402 --> 00:53:20,634 I think that is that is that is very important for you, but I’m 1342 00:53:20,634 --> 00:53:21,866 very important for you, but I’m talking more about it as a 1343 00:53:21,866 --> 00:53:23,567 talking more about it as a European citizen rather than 1344 00:53:23,567 --> 00:53:25,933 European citizen rather than it’s it’s maybe not even one 1345 00:53:25,933 --> 00:53:28,167 it’s it’s maybe not even one second vice President. Thanks 1346 00:53:28,167 --> 00:53:31,467 second vice President. Thanks Alex Now we just had some of 1347 00:53:31,467 --> 00:53:34,368 Alex Now we just had some of the comments made by Claudia I 1348 00:53:34,368 --> 00:53:35,966 the comments made by Claudia I mean pretty particular whenever 1349 00:53:35,966 --> 00:53:39,299 mean pretty particular whenever we took off Europe is is often 1350 00:53:39,299 --> 00:53:42,367 we took off Europe is is often a topic. so yes, obviously. 1351 00:53:42,367 --> 00:53:43,134 a topic. so yes, obviously. Diamonds in this country is 1352 00:53:43,134 --> 00:53:44,801 Diamonds in this country is something we’ll look at but we 1353 00:53:44,801 --> 00:53:46,534 something we’ll look at but we see particularly in the context 1354 00:53:46,534 --> 00:53:47,867 see particularly in the context of Covid- 19. I mean it could 1355 00:53:47,867 --> 00:53:53,068 of Covid- 19. I mean it could be 19 East ad sets and and also 1356 00:53:53,068 --> 00:53:54,468 be 19 East ad sets and and also it’s a show that’s exogenous. I 1357 00:53:54,468 --> 00:53:56,933 it’s a show that’s exogenous. I mean it comes from odd size to 1358 00:53:56,933 --> 00:53:58,301 mean it comes from odd size to the banking system. they’re not 1359 00:53:58,301 --> 00:53:59,734 the banking system. they’re not the culprits if anything at 1360 00:53:59,734 --> 00:54:01,067 the culprits if anything at moments they are helping with 1361 00:54:01,067 --> 00:54:03,968 moments they are helping with the crisis so the statements 1362 00:54:03,968 --> 00:54:05,468 the crisis so the statements made by I know the European 1363 00:54:05,468 --> 00:54:06,868 made by I know the European Commission on stated rules the 1364 00:54:06,868 --> 00:54:07,967 Commission on stated rules the fact that could be a loosening 1365 00:54:07,967 --> 00:54:10,766 fact that could be a loosening of some of these rules. 1366 00:54:10,766 --> 00:54:14,100 of some of these rules. Something that would concern us 1367 00:54:14,100 --> 00:54:18,101 Something that would concern us it is a exceptional crisis and 1368 00:54:18,101 --> 00:54:19,834 it is a exceptional crisis and to be to fail all those 1369 00:54:19,834 --> 00:54:22,300 to be to fail all those resolutions are to give up and 1370 00:54:22,300 --> 00:54:23,135 resolutions are to give up and then depending on the type of 1371 00:54:23,135 --> 00:54:25,201 then depending on the type of crisis and the authorities will 1372 00:54:25,201 --> 00:54:27,001 crisis and the authorities will choose the most appropriate 1373 00:54:27,001 --> 00:54:29,334 choose the most appropriate option so in terms of ratings 1374 00:54:29,334 --> 00:54:30,734 option so in terms of ratings just by the comments made the 1375 00:54:30,734 --> 00:54:32,068 just by the comments made the statements made by the European 1376 00:54:32,068 --> 00:54:34,100 statements made by the European Commission, we have not changed 1377 00:54:34,100 --> 00:54:35,900 Commission, we have not changed our assessment of the 1378 00:54:35,900 --> 00:54:37,335 our assessment of the supportiveness of the new 1379 00:54:37,335 --> 00:54:41,167 supportiveness of the new countries with Simply support. 1380 00:54:41,167 --> 00:54:42,700 countries with Simply support. Again, that doesn’t mean that’s 1381 00:54:42,700 --> 00:54:44,167 Again, that doesn’t mean that’s there wouldn’t be any support 1382 00:54:44,167 --> 00:54:45,601 there wouldn’t be any support available potentially in the 1383 00:54:45,601 --> 00:54:46,700 available potentially in the scenario like that, especially 1384 00:54:46,700 --> 00:54:48,234 scenario like that, especially in moments is our base case and 1385 00:54:48,234 --> 00:54:50,134 in moments is our base case and it’s not a business case for 1386 00:54:50,134 --> 00:54:52,399 it’s not a business case for the long term. There’s no 1387 00:54:52,399 --> 00:54:54,802 the long term. There’s no question specifically to you, 1388 00:54:54,802 --> 00:54:57,933 question specifically to you, which I find interesting from P 1389 00:54:57,933 --> 00:55:00,167 which I find interesting from P has he like reduces systemic 1390 00:55:00,167 --> 00:55:01,967 has he like reduces systemic risk at all or even increase 1391 00:55:01,967 --> 00:55:04,234 risk at all or even increase systemic risk due to allocation 1392 00:55:04,234 --> 00:55:05,899 systemic risk due to allocation and you mentioned that the gaps 1393 00:55:05,899 --> 00:55:08,000 and you mentioned that the gaps in terms of who holds the like 1394 00:55:08,000 --> 00:55:11,267 in terms of who holds the like but Could you could you answer 1395 00:55:11,267 --> 00:55:13,201 but Could you could you answer that question in a in a kind of 1396 00:55:13,201 --> 00:55:14,700 that question in a in a kind of holistic way? well, the 1397 00:55:14,700 --> 00:55:15,534 holistic way? well, the holistic way? I love this 1398 00:55:15,534 --> 00:55:17,833 holistic way? I love this question. realistic is that 1399 00:55:17,833 --> 00:55:19,134 question. realistic is that yeah, I mean to be to feel what 1400 00:55:19,134 --> 00:55:20,534 yeah, I mean to be to feel what you can do is obviously we 1401 00:55:20,534 --> 00:55:21,601 you can do is obviously we reduce the cost of the crisis, 1402 00:55:21,601 --> 00:55:23,134 reduce the cost of the crisis, but if you have a crisis, 1403 00:55:23,134 --> 00:55:25,567 but if you have a crisis, whether it’s a bailout or bail 1404 00:55:25,567 --> 00:55:27,067 whether it’s a bailout or bail in you have the same amount of 1405 00:55:27,067 --> 00:55:29,101 in you have the same amount of losses in without so by someone 1406 00:55:29,101 --> 00:55:30,000 losses in without so by someone and guess what there’s someone 1407 00:55:30,000 --> 00:55:32,100 and guess what there’s someone always end up being people so 1408 00:55:32,100 --> 00:55:34,667 always end up being people so it’s just easy people by us 1409 00:55:34,667 --> 00:55:37,133 it’s just easy people by us taxpayers or as investors and 1410 00:55:37,133 --> 00:55:38,401 taxpayers or as investors and pension funds insurance 1411 00:55:38,401 --> 00:55:39,968 pension funds insurance products etcetera so again, I 1412 00:55:39,968 --> 00:55:43,033 products etcetera so again, I think. 1413 00:56:17,666 --> 00:56:20,267 Initiatives to avoid over 1414 00:56:20,267 --> 00:56:21,633 Initiatives to avoid over excessive concentration, but 1415 00:56:21,633 --> 00:56:23,267 excessive concentration, but yes, ultimately loss is 1416 00:56:23,267 --> 00:56:25,701 yes, ultimately loss is absorbed by someone and people 1417 00:56:25,701 --> 00:56:28,234 absorbed by someone and people behind those losses well to 1418 00:56:28,234 --> 00:56:30,234 behind those losses well to that and not just the of 1419 00:56:30,234 --> 00:56:31,668 that and not just the of semantics because you’re always 1420 00:56:31,668 --> 00:56:33,767 semantics because you’re always talk about functionality isn’t 1421 00:56:33,767 --> 00:56:35,299 talk about functionality isn’t that a way of saying that to be 1422 00:56:35,299 --> 00:56:37,567 that a way of saying that to be to fail will never be ended if 1423 00:56:37,567 --> 00:56:41,868 to fail will never be ended if we still have optionality. 1424 00:57:12,234 --> 00:57:14,434 if one day you have the option 1425 00:57:14,434 --> 00:57:18,334 if one day you have the option is that’s fine, but at least 1426 00:57:18,334 --> 00:57:20,501 is that’s fine, but at least that people want to doing that 1427 00:57:20,501 --> 00:57:23,801 that people want to doing that it will be the better option. 1428 00:57:23,801 --> 00:57:25,534 it will be the better option. to accredited accredited. Do 1429 00:57:25,534 --> 00:57:27,535 to accredited accredited. Do this quick about banks being 1430 00:57:27,535 --> 00:57:29,166 this quick about banks being international and National and 1431 00:57:29,166 --> 00:57:30,634 international and National and internationally and nationally 1432 00:57:30,634 --> 00:57:32,434 internationally and nationally invest. I think it was first 1433 00:57:32,434 --> 00:57:33,934 invest. I think it was first formulated by some Huerta when 1434 00:57:33,934 --> 00:57:36,300 formulated by some Huerta when he was at the financial 1435 00:57:36,300 --> 00:57:40,334 he was at the financial services in the UK yeah to you 1436 00:57:40,334 --> 00:57:41,433 services in the UK yeah to you Claudia, I mean that same 1437 00:57:41,433 --> 00:57:43,002 Claudia, I mean that same question has you like reduce 1438 00:57:43,002 --> 00:57:44,334 question has you like reduce systemic risk at all or even 1439 00:57:44,334 --> 00:57:45,899 systemic risk at all or even increase it due to the 1440 00:57:45,899 --> 00:57:50,602 increase it due to the allocation? It’s an answer to. 1441 00:58:23,434 --> 00:58:25,002 Like investors, they also know 1442 00:58:25,002 --> 00:58:26,667 Like investors, they also know they get a they get a premium 1443 00:58:26,667 --> 00:58:28,034 they get a they get a premium they get a premium for their 1444 00:58:28,034 --> 00:58:30,700 they get a premium for their investments and the taxpayer 1445 00:58:30,700 --> 00:58:32,267 investments and the taxpayer was quite innocent. He or she 1446 00:58:32,267 --> 00:58:34,934 was quite innocent. He or she didn’t even know that they were 1447 00:58:34,934 --> 00:58:35,801 didn’t even know that they were that there was standing in for 1448 00:58:35,801 --> 00:58:36,667 that there was standing in for this for this. so I think 1449 00:58:36,667 --> 00:58:37,901 this for this. so I think that’s the big difference so we 1450 00:58:37,901 --> 00:58:40,100 that’s the big difference so we have now a group of investors 1451 00:58:40,100 --> 00:58:41,833 have now a group of investors who hopefully know what they’re 1452 00:58:41,833 --> 00:58:43,533 who hopefully know what they’re doing they get in in in the 1453 00:58:43,533 --> 00:58:44,834 doing they get in in in the going concern they get a nice 1454 00:58:44,834 --> 00:58:47,001 going concern they get a nice return for the investments and 1455 00:58:47,001 --> 00:58:48,334 return for the investments and so they they they should have 1456 00:58:48,334 --> 00:58:49,900 so they they they should have the capacity to be at these 1457 00:58:49,900 --> 00:58:51,000 the capacity to be at these risks and to build these losses 1458 00:58:51,000 --> 00:58:52,601 risks and to build these losses and I think that’s where the 1459 00:58:52,601 --> 00:58:54,667 and I think that’s where the the. And again, this is data we 1460 00:58:54,667 --> 00:58:56,568 the. And again, this is data we have for Europe from the for 1461 00:58:56,568 --> 00:58:57,667 have for Europe from the for the for those of you familiar 1462 00:58:57,667 --> 00:58:59,634 the for those of you familiar with the statistics we have to 1463 00:58:59,634 --> 00:59:01,134 with the statistics we have to secure this database in here 1464 00:59:01,134 --> 00:59:02,933 secure this database in here where we can actually trace the 1465 00:59:02,933 --> 00:59:05,300 where we can actually trace the investors We have the question 1466 00:59:05,300 --> 00:59:07,434 investors We have the question about that as the details on 1467 00:59:07,434 --> 00:59:09,401 about that as the details on what you called good data 1468 00:59:09,401 --> 00:59:10,467 what you called good data infrastructure without that in 1469 00:59:10,467 --> 00:59:11,734 infrastructure without that in Europe, where is where is that 1470 00:59:11,734 --> 00:59:14,767 Europe, where is where is that to be found well, it’s the 1471 00:59:14,767 --> 00:59:15,667 to be found well, it’s the state of the that’s collected 1472 00:59:15,667 --> 00:59:20,300 state of the that’s collected in the European is it’s the 1473 00:59:20,300 --> 00:59:21,602 in the European is it’s the systems of the European Central 1474 00:59:21,602 --> 00:59:24,633 systems of the European Central Bank. 1475 01:01:56,700 --> 01:01:58,967 Future conversations that many