In particular, the G-20 has approved, as a new international standard, the so-called Key Attributes of Effective Resolution Regimes for Financial Institutions, which have to be complied with in each jurisdiction. In Spain, Law 9/2012 adopts and applies many of the principles set forth in the “Key Attributes”. Meanwhile, the European Union expects to adopt the Bank Recovery and Resolution Directive by the end of the year, which will be an important step forward in fully implementing the “Key Attributes” in all Member States. On this last point, as you know Ecofin is currently discussing the Single Resolution Mechanism and the Resolution Fund. It seems that agreements, or draft agreements, are being reached and that progress is being made in the area of resolution, such as the determination of the competent authority. Also, in the more difficult and complicated issue of financing, headway is being made on the characteristics of the proposed Single Resolution Fund. Negotiations are following their course and an extraordinary Ecofin meeting is scheduled for next week to address these matters. Let me now look at the new powers assigned to the Banco de España in the draft bill on credit institution supervision and solvency to be debated shortly. BIS central bankers’ speeches  3  Obviously all the functions and powers conferred on the Banco de España, which I will describe shortly, will have to be interpreted and implemented taking into account the powers of the European Central Bank in the framework of the implementation of the Single Supervisory Mechanism.

I would like to end my comments on the work of the Basel Committee by touching briefly on another regulatory matter currently under review, the treatment of large exposures. This falls within the field of prudential measures additional to the solvency ratio, which aim to ensure the survival of banks in extreme situations. The review focuses on the treatment of exposures to third parties, since that of intra-group exposures has been postponed for the time being. The general principle is that exposures to all counterparties should be subject to limits based on the capital of the bank. That limit has been set generally at 25% of tier 1 capital, although for certain exposures, such as those between systemic banks, it is stricter. Notably, provision is made for the possibility, after an observation period, of limiting exposures to central counterparties (CCPs), although this matter is open and first requires an assessment of the effects of other rules governing relationships between banks and CCPs. Let me now say a few words on some of the main regulatory projects on which the Financial Stability Board (FSB) is currently working, particularly that to promote a new regulatory framework for the treatment of systemically important institutions, i.e. those whose complexity, size and interconnectedness are such that their failure could cause serious problems to the global financial system. This new framework rests on four pillars: additional loss absorbency, effective resolution mechanisms, increased supervisory intensity and more resilient financial market infrastructure. Unquestionable progress has been made in implementing this framework.