Small Countries, Large Multi-Country Banks
Jón Sigurðsson
Chapter 5 in Who Pays for Bank Insolvency?, 2004, pp 142-163 from Palgrave Macmillan
Abstract:
Abstract The experience of the Nordic-Baltic region in recent years provides an excellent illustration of the way that the developments of the banking system and financial markets have outgrown the traditional countrybased system of regulation and concern. The size, complexity, inter relational and multinational character of the banking system means that not only is the problem of TBTF writ large but it is not clear whether the authorities are in a position to handle a major failure should it occur. Indeed the problem is in many respects the reverse of what is traditionally understood. Traditional thinking was that society could not afford the costs of failure and hence the authorities would choose to bail out a bank in difficulty. Now the concern is that the banks are so large and complex compared with the individual countries that society could not afford to bail them out. They are thus in a real sense ‘too big to save’ (TBTS).
Keywords: Total Asset; Banking System; Nordic Country; Banking Sector; Credit Union (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-52391-3_6
Ordering information: This item can be ordered from
http://www.palgrave.com/9780230523913
DOI: 10.1057/9780230523913_6
Access Statistics for this chapter
More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().