Spanish resolution regulations are already based on this bail-in model. That said, the scope of the bail-in under Law 9/2012 is somewhat more limited than in the Directive, which requires that resolution costs be borne not only by shareholders and the holders of hybrid and subordinated instruments (as envisaged under Law 9/2012), but also by the institution’s creditors (with some exceptions, e.g. secured creditors or depositors for the amount guaranteed by the Deposit Guarantee Fund). That will necessitate the updating of Spanish resolution rules to broaden the set of creditors who must bear the cost of resolution. BIS central bankers’ speeches  3  Closely connected with the idea of the bail-in is a new term called GLAC (gone concern loss absorption capacity), which consists of establishing a loss-absorption requirement once resolution has been reached. Current debate on GLAC turns on what attributes financial instruments must have so they may be considered as possessing such loss absorption capacity. It is also being discussed what the appropriate amount for GLAC should be for banks to be able to continue performing their critical functions. Final considerations: simplification for the sake of effective regulation To conclude, this entire programme of reforms will be of little use if the various agents involved cannot implement it effectively. Implementation should involve two stages. Firstly, authorities should ensure that international agreements are properly transposed to their respective national frameworks. Secondly, for effective regulatory implementation to take place, there must be a pass-through from the theoretical and legal plane to everyday reality.

For more than three decades, ASEAN has sustained high economic growth. ASEAN is currently one of the fastest-growing and most dynamic regions in the world. According to the International Monetary Fund (IMF), economic growth in the region is expected to be sustained at an average of 5.3% over the next five years to reach USD3.6 trillion by 2019, five times the size it was a decade ago. Additionally, is also the significant increase in the middle class population in ASEAN. With a population of more than 600 million people, this trend will create a significant final demand in the global economy. This is reinforced by rising income in the region. Per capita income in ASEAN has almost trebled in this recent decade. ASEAN is therefore becoming a thriving hub in consumer demand. By 2020, ASEAN is estimated to contribute to more than half of the total global middle class population, representing more than USD2 trillion of new consumption within the region. Along with the development of more robust cross-border supply chains in the region, economic integration of ASEAN has occurred on several fronts. In particular, intra-regional trade and investment activity has increased significantly in this recent 15 years. Since 1990, ASEAN intra-regional trade has grown from 18% to 24% of total trade, and intra-regional investment has quadrupled since 2000, from 4% to 17% of total investment. While there has been a trend towards greater intra-regional trade and investment, financial integration in the region has lagged behind.