These CoCos can be converted into CET1 equity or written off in order to absorb losses in current operations. When accumulating the necessary bail-in instruments and high-trigger CoCos, banks have the opportunity to replace existing instruments with the required higher-quality instruments. The further strengthening of resilience through the accumulation of high-trigger CoCos, as foreseen by the regulations, is important and necessary. One reason for this is the big banks’ loss potential, which continues to be substantial relative to their capitalisation. Given their Page 1/3  Berne, 15 December 2016 Fritz Zurbrügg  News conference  significance to the Swiss economy, it is important that the big banks remain adequately capitalised, even in the event of such losses occurring. A second reason is the critical assessment by the markets as regards the resilience of banks, both in Switzerland and worldwide. By strengthening their resilience, banks can convince the markets of their soundness. The likelihood of share price collapses and sharply increased premia for credit default swaps, such as those observed at some banks this year, would thus be reduced. In addition to a strengthening of resilience, it is also essential that the big banks further improve their resolvability. This requires both sufficient holdings of bail-in instruments and the formulation of credible emergency and resolution plans. Emergency plans are aimed at ensuring that, in the event of imminent insolvency, functions that are important for Switzerland can be maintained.

Such emissions are chiefly responsible for the polluted air we breathe. Apart from its effect on pulmonary diseases and people’s quality of life, pollution correlates with a rise in the planet’s average temperature. That may severely affect the economy, tourism and agriculture, prompting potential humanitarian or migratory crises we can hardly evaluate at present. I believe we will all agree that climate change is the most global matter we can imagine, both in its consequences and its causes. Clearly, a potential rise in temperatures affects the entire planet. And evidently, too, atmospheric pollution does not stop when it reaches a border. Fortunately, most countries are adopting strategies to reduce greenhouse gas emissions as a way to mitigate the associated risks. Let us not forget that, despite this being a global problem, the rise in temperatures would have different effects from one country to another,3 hence the importance of international agreements being reached. 1  Among the key pieces of legislation setting ceilings on pollutants in Europe are the 2008 Directive on ambient air quality (2008/50/EC) and the 1996 Framework Directive on ambient air quality assessment and management (96/62/EC). See https://www.eea.europa.eu/ 2 http://www.realinstitutoelcano.org/wps/portal/rielcano_es/contenido?WCM_GLOBAL_CONTEXT=/elcano/elcano_es/z onas_es/encuesta-espanoles-ante-cambio-climatico-sep-2019 3 Some studies indicate that global warming may be proving economically and socially beneficial for the rich countries, in particular the coldest ones such as Sweden and Norway, while adversely affecting poorer countries. See Noah S. Diffenbaugh and Marshall Burke, “Global warming has increased global economic inequality”.