too big to fail

Publication date: 3 Feb 2016 | Publication type: National Institute Economic Review | External authors: Barth, J R, Wihlborg, C | JEL classification: G18, G21, G28 | Journal: National Institute Economic Review Issue 235 | Publisher: Sage Publications, London
‘Too big to fail’ traditionally refers to a bank that is perceived to generate unacceptable risk to the banking system and indirectly to the economy as a whole if it were to default and be unable to fulfill its obligations. Such a bank generally has substantial liabilities to other banks through...