"Too-big-to-fail-banks" will be subject to special regulation

Banks, on which depends the stability of national banking systems, may be subject to special regulation, the chairman of the Basel Committee Nout Wellink, the words quoted by Bloomberg. Financial Stability Board (Financial Stability Board, FSB), created by the participating countries G20 to find ways to prevent future crises, "put on the agenda the question of how to deal with the banks, whose failure threatens the stability of the financial system of the whole country, said H . Wellink, who is also head of the Central Bank of the Netherlands. According to him, national regulators should also consider adopting "appropriate measures". By mid-2011 FSB will publish the first list of so-called "too-big-to-fail-banks", or banks, the collapse which threatened the stability of financial systems across the country. By the end of this year's FSB will also offer concrete measures that will address the problem of "too-big-to-fail-banks". In particular, we may have additional capital requirements of system of financial institutions or obligation to place a certain amount of bonds, which if necessary could be scrapped or converted into shares. In addition, such banks may also be subject to special restrictions on the volume of transactions with one counterparty. Source: Finmarket