About the Size of Banks

September 7, 2009

Among the array of new regulatory projects aimed at providing greater stability to the international financial system, proposals have emerged to establish higher capital requirements based on the size of banks.

The fear is that some entities may be too big to fail, meaning authorities would have no choice but to rescue them to prevent the adverse consequences their collapse would have on the entire system.

Read the article by Pedro Pablo Villasante, Secretary General of the AEB, published in Expansión.

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This content has been automatically translated and may contain inaccuracies.