unsuccessful, the internal long - term debt will be available to u. s. authorities for orderly resolution and recapitalization of the intermediate holding companies. we have calibrated our proposed internal tlac requirements slightly below our proposed external tlac requirements for u. s. gsibs. this slightly lower calibration for internal tlac recalls the difference between local going - concern capital requirements and the gsib surcharge, but the gap is somewhat smaller, reflecting the concerns i mentioned a moment ago. the proposal thus balances support for the preferred resolution strategy of the home resolution authority of the foreign gsib with assurance of u. s. financial stability if that strategy cannot be executed successfully. 12 conclusion my view of shared responsibility for overseeing international banks emphasizes the importance of financial stability even as it allows for benefits specific to international banking. for the reasons i have explained, in the end host countries need to make the judgments on the tradeoffs between these goals. but i have also explained how a strong set of international prudential standards and good institutional relationships among regulators could help tilt this balance toward greater flexibility for internationally active banks. in response to positions akin to what i have presented today, one often hears complaints that the emphasis on financial stability will result in the balkanization of international banking. i would note first that it is not at all clear that developments since the crisis have on net balkanized banking, so much as shifted some international banking assets from the organisation for economic co - operation and development ( oecd ) countries whose banks were disproportionately affected by the financial crisis to banks from some emerging market and developing countries. 13 this development probably reflects both needed changes in some of the oecd nation banks and a logical reflection of the increasing economic importance of the non - oecd countries. second, i wonder how these critics can think that the pre - crisis situation of supposedly consolidated oversight and substantial bank flexibility was a desirable one. at least some of our internal tlac proposal effects this balance principally by not including parent gsib surcharges in the calibration for fbo intermediate holding companies but also by lowering the baseline tlac requirement for u. s. intermediate holding company subsidiaries of single - point - of - entry strategy fbos from 18 percent of riskweighted assets to 16 percent of risk - weighted assets. for a discussion of these points, see claessens and van horen, “ the impact of

banks, noted a consistent increase in the number of financial institutions that support financial education initiatives. bankers who responded to a 2003 consumer bankers association survey reported that 98 percent offer financial literacy programs or work with partners that support such efforts. many bankers participate because they want to be recognized as good corporate citizens ; however, many other bankers have realized that their activities may help them reach hard - to - serve markets such as immigrants or people without a relationship with a bank. organizations, including some of the federal reserve banks, working at the community level have established volunteer income tax assistance ( vita ) sites, where instructors not only help people with their tax returns, but also teach them how to budget their income, pay their bills, and manage credit. these programs are especially noteworthy since preliminary research reveals a considerable number households that receive tax refunds intend to save them or invest them in education and other wealthbuilding activities. building a foundation for financial education children and teenagers should begin learning basic financial skills as early as possible. indeed, improving basic financial education in elementary and secondary schools can help prevent students from making poor decisions later, when they are young adults, that can take years to overcome. in particular, it has been my experience that competency in mathematics - - both in numerical manipulation and in understanding the conceptual foundations - - enhances a person's ability to handle the more ambiguous and qualitative relationships that dominate our day - to - day financial decisionmaking. for example, through an understanding of compounding interest, one can appreciate the cumulative benefit of routine saving. similarly, learning how to conduct research in a library or on the internet enhances decisionmaking. focusing on improving fundamental mathematical and problem - solving skills can develop knowledgeable consumers who can take full advantage of the sophisticated financial services offered in an ever - changing marketplace. while some adults may believe that financial and related mathematical concepts are too complex for younger school children, i was pleased to have an experience that dispels such thinking. in june, i had the opportunity to discuss financial matters with a sixth - grade class that had begun a financial education program sponsored by operation hope, a national nonprofit organization. the children's surprisingly precocious questions demonstrated an ability and a desire to learn more about the fundamental principles of money and banking. this encounter and countless others in classrooms and community centers across the country indicate that, in the long run, better basic education at home and in elementary and secondary schools can provide the foundation for a lifetime of learning. but not