Addressing the risks posed by systemically important banks

The end of too big to fail?

In this paper, we navigate the vast and confusing world of systemically important bank (SIB) regulation, taking stock of the progress made to date to address the risks posed by SIBs.

We identify four key impact areas of regulation aimed at SIBs: increased funding costs; changes to operational structure and firm-wide strategy; increasing demands on data; and liquidity issues.

2012 saw significant developments in regulation and supervision for systemically important banks.

Progress was made in several key areas:

drafting recovery and resolution plans;

advancing the work on capital, supervision, data, and restructuring the banking sector.

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