of foreign banks should operate on a level playing field with their domestic counterparts. this is generally consistent with the long - standing treatment of large and complex bank and nonbank subsidiaries around the world. as such, our rules subject a large foreign bank to the same capital and liquidity requirements as domestic bank holding companies by requiring the foreign bank to hold its u. s. subsidiaries through a u. s. intermediate holding company ( ihc ) and imposing capital and liquidity requirements to the ihc. at the same time, we have adjusted our approach for the u. s. branches of a foreign bank with a large u. s. presence in recognition that branches are subject to a narrower set of permissible activities and operate as a direct extension of the parent bank. for these u. s. branches, we have imposed local liquidity requirements in light of the liquidity vulnerabilities that many u. s. branches of foreign banks experienced in the crisis, but no separate capital requirements. for ihcs that are subsidiaries of foreign - owned g - sibs, the federal reserve requires such a firm to issue a minimum amount of loss - absorbing instruments to its foreign parent, known as internal tlac, including a minimum amount of unsecured long - term debt. 6 in the event that an ihc was experiencing significant financial distress, the internal tlac could be used to replenish the ihc ’ s equity and maintain its solvency. the u. s. implementation of internal tlac is modeled on the internal tlac framework developed by the financial stability board ( fsb ), which includes a calibration of the amount of loss - absorbing resources that should 12 cfr part 252, subpart g. - 8be prepositioned in a given jurisdiction. 7 specifically, the fsb contemplates that internal tlac requirements of a subsidiary of a foreign bank expected to be resolved through spoe would be calibrated at 75 to 90 percent of the external tlac requirement that would apply to the subsidiary if it were to be separately resolved. in implementing the tlac standards in the united states, the board calibrated the internal tlac requirement for ihcs of foreign - owned g - sibs at the high end of the fsb range, at around 90 percent. adjustments to the current regime there are two principal points i have been making today. the first is that some amount of local capital

jens weidmann : euro crisis and no end in sight? speech by dr jens weidmann, president of the deutsche bundesbank, at the industry soiree of the industry confederation for the district of gutersloh ( unternehmerverband fur den kreis gutersloh e. v. ), gutersloh, 23 september 2015. * 1. * * welcome dr miele ladies and gentlemen thank you for inviting me to your industry soiree. i am happy to see that there are so many people who are interested in listening to my speech. according to the astronomical definition, autumn began this morning at precisely 10. 21. summer has, therefore, definitely come to a close now. the refugee crisis has been the political topic dominating the press these past few weeks, and i am sure it will continue to make the headlines in the autumn. the troubling pictures of death and forced displacement in the crisis regions of the middle east give us an idea of the scale of suffering endured by the refugees of war and have set in motion a wave of willingness to help here in germany. giving a helping hand to people whose lives are in danger should be the most natural thing in the world in a civilised country. however, the large influx of refugees undoubtedly also represents a colossal challenge which will ask a lot of us – not only in financial terms. there are also language and cultural barriers that need to be overcome. but if we manage to integrate those who are allowed to stay into our society, migration also offers long - term opportunities. demographic change means that we are going to need additional workers in the future to maintain our level of prosperity. according to the current population projection by the federal statistical office, the working - age population will diminish by up to 15 million persons by 2060, which represents a decrease of 30 %. “ work is the best path to integration. ” this wise remark by the deputy chairman of the gutersloh industry confederation, dr ernst wolf, was quoted last week in the context of an initiative that was launched by the confederation to offer these people greater job opportunities, which is something i can only support. integration can only be a success overall if people are swiftly and sustainably integrated in the labour market. if we cast our minds back to the beginning of the summer, the headlines were dominated by a different topic altogether – the “ greek drama ”. following what could be described as a showdown in the night from 12 to