MILAN, Sept 16 (Reuters) - Financial Stability Board Chairman Mario Draghi set out a five-point package of measures on Thursday to regulate banks that are deemed to be too big to fail, including extra capital and liquidation mechanisms.
Writing in Italy's business daily Il Sole 24 Ore, Draghi, who is also governor of the Bank of Italy, said rules on these big banks -- systemically important financial institutions (SIFI) -- will be presented in November.
"Dealing with these institutions which are 'too big to fail' will therefore be the next big step in the global reform programme," he said.
First, these big banks should have a capacity to absorb losses beyond the minimum Basel III rules agreed at the weekend, including possible convertible capital and "bail-in" debt.
Bail-in debt would put the cost of saving a bank on creditors, not taxpayers, he said.
The second and third points involve mechanisms to wind-up banks that need to be strengthened at the national level as well as across borders, he said.
The fourth requirement is strengthening efficiency and intensity of supervision for banks in general and for big banks in particular, he said.
The final point is strengthening the financial market infrastructure to reduce contagion risks, he said.
The FSB includes all G20 major economies, Spain, and the European Commission. (Writing by Nigel Tutt; Editing by Kim Coghill)