stability board ( fsb ). now, almost three years later, construction is well underway. but it ’ s a big house with several wings. the foundation has been laid and the framing has been completed. some wings are even ready for occupancy, while in others the walls are still going up. in my remarks today, i will focus on the key prerequisites for completing construction and the challenges of moving in. i will organize my remarks around the three cs essential to get to completion : the need to be comprehensive, coordinated and consistent. bis central bankers ’ speeches reform must be comprehensive, spanning institutions, markets and products, from inception to resolution. reform must be coordinated across its many elements, across jurisdictions and with stakeholders. and reform must be implemented in a consistent manner around the globe. comprehensive to ensure the reforms are comprehensive, work began at the core of the financial system and is now moving outward to the periphery. three wings that will house the reforms to the core are now ready to move into. first, the new basel iii capital rules have been finalized and are now being implemented over a suitably gradual transition period. the new standard substantially increases the lossbearing capital that financial institutions must hold and establishes a new limit on leverage. this is a significant strengthening of the global rules, effectively raising the minimum global capital requirement sevenfold. second, a methodology to assess systemic importance has been developed, and 29 banks have been identified as globally systemic. these banks are required to have additional lossabsorption capacity tailored to their systemic importance, ranging from 1 per cent to 2. 5 per cent of risk - weighted assets, to be held in common equity. they will also be subject to closer scrutiny by bank supervisors. third, to be able to resolve firms – no matter how large – without disruption to the economy or cost to taxpayers, the fsb has developed a new international resolution standard. work is now turning to the implementation of the key attributes for effective resolution. by the end of this year, global systemically important financial institutions ( sifis ) will have completed : resolvability assessments ; recovery and resolution plans ; and institution - specific, cross - border co - operation agreements so that home and host authorities are better equipped to deal with crises. the sooner we move in, the sooner we roll back too big to fail. other wings of the house are at various stages of construction. permit me a few words about each. liquidity standards the construction of

to be an enduring pillar of the international financial architecture. to that end, the g - 20 leaders agreed at the cannes summit last november that the fsb should expand its resources, and gain legal personality bis central bankers ’ speeches and greater financial autonomy. this will extend the fsb ’ s capacity to coordinate, monitor and assess financial reform. but, ultimately, it is up to the fsb ’ s member countries to ensure that the house of reform becomes the home to the financial system. full implementation is the responsibility of every member. we should expect no less. thank you. bis central bankers ’ speeches