##se 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. mestic market are limited by european rules to a maximum of 2 %. yet the resulting capital buffers could be insufficient to actually cover systemic risk. evaluation therefore means making the costs and rewards of the reforms for society as a whole more transparent and disclosing any unintended side - effects. the evaluation of the reforms should not be used as a pretext to water them down or weaken the resilience of the financial system. * * * page 9 of 9 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated.

9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. what needs to be done? greater capital levels have been built up over the past few years, both in the german financial system and in the banks at its core. at the same time, though, the extended spell of low interest rates has left the system more vulnerable to unexpected developments. it is possible that the assessment of future economic developments and debt sustainability is overly positive, while contagion effects in the financial system could be understated. there is thus no reason to sound the all clear. sufficient resilience and sustainable loans are in the interest of each and every market participant. in this context, we have to look at the stability of the financial system as a whole. since the financial crisis, reforms have been initiated – the impact of which is now gradually making itself felt in the markets. more capital and the financial system ’ s improved resilience to negative developments are a stated objective of these reforms. we can now begin evaluating the effects of the reforms. have they achieved their objectives? do the reforms bring with them unintended side - effects? under germany ’ s g20 presidency, which will come to an end in the next few days, we have made considerable progress. together with our international partners, we have agreed on a framework for a structured evaluation of the reforms. sound and reliable information and data are at the heart of each evaluation. this is why it ’ s so important for us to close the gaps in the housing data in germany. a structured evaluation is the only way to gauge the costs and benefits of the reforms to society at large. let me give you an example. the costs of failures in the financial system should be borne by those who cause them – the shareholders and potentially also the creditors of financial institutions – rather than by the taxpayer. the agreed rules for bank resolutions therefore have to be rigorously applied – and creditors have to bear losses in a resolution. there may be increased costs for the private sector, but society benefits when the costs of crises are shouldered by those who cause them. a second example of the implementation and evaluation of reforms is capital addons for systemically important financial institutions. at present, the macroprudential add - ons imposed on the capital of institutions that are systemically important to the dopage 8 of 9 deutsche bundesbank, directorate general communications wilhelm - epstein - stras