support these initiatives. whatever the outcome of the technical work, the instrument should be designed in line with the fsb guiding principles. this means : it should only be available on a temporary basis, when private funding sources are insufficient, on conditions that minimize moral hazard. concluding remarks when looking at the progress made on bank resolvability, i can say that from an fsb perspective the glass is half full and that i remain optimistic. much progress has been made on resolution planning, tlac and funding in resolution. this has helped to increase the resolvability of the banks and the preparedness of the authorities. the challenge will be to keep up the good work. this means banks should invest in improving their capabilities to execute the resolution strategy. authorities need to continue to provide the banks with guidance and make sure they are operationally ready for a resolution case. i hope i can count on your efforts in this endeavour of making your banks resolvable, especially in the areas of operational continuity, tlac and funding in resolution. thank you!

##sb determines the minimum amount of loss - absorbing fout! onbekende naam voor documenteigenschap. capacity g - sibs should have. last month, the tlac principles were implemented in european legislation through the banking package. this means that, as of last friday, all g - sibs in europe are required to have a minimum loss absorbing capacity of at least 16 % of risk weighted assets, plus the combined buffer requirement. the european legislation on some aspects goes beyond the tlac term sheet, for example by requiring mrel targets for all banks instead of only g - sibs. also, the new brrd2 introduces binding minimum subordination requirements for banks with over 100 billion euro on their balance sheet. this will ensure that sufficient loss - absorbing capacity is available for bail - in during resolution. the fsb has been monitoring the progress g - sibs are making in building up loss absorbing capacity. we see that progress has been steady and significant, both in the setting of tlac requirements by authorities and in the issuance of tlac instruments by banks. this has been instrumental in enhancing resolvability and boosting market confidence in authorities ’ capabilities to address “ too - big - to - fail ” risks. however, despite all this, we are not at the end of the road yet. the tlac review that the fsb recently finalized, has shown that additional steps relating to loss - absorbing capacity are necessary. i will address three topics where i believe progress is required. first, it is clear that there will be less issues when bailing - in a subordinated liability compared to bailing in a senior instrument. no creditor worse off issues come to mind in this context. the tlac term sheet, by way of exception, allows for senior instruments to be counted towards tlac. in my view, more analysis is required as to how these exceptions influence the resolvability of banks. second, we have to make sure that adequately distributing loss - absorbing capacity within the group, needs to be prioritized. this means making sure losses in subsidiaries can be upstreamed to the parent company, and capital generated through bail - in can be downstreamed from parent to subsidiary. without an efficient internal mechanism, bail - in simply will not work. it is good to know : this topic also has the attention of the srb. third, further work is needed on bail - in execution.