BoE paper identifies issues in measuring ‘too big to fail’
No measurement approach is perfect, researchers suggest
Measuring the ‘too big to fail' (TBTF) problem is important, but far from straightforward, a financial stability paper published today by the Bank of England (BoE) shows.
Caspar Siegert and Matthew Willison's paper, Estimating the extent of the ‘too big to fail' problem – a review of existing approaches, examines various approaches to measuring TBTF, including assessing changes in the value of banks' equity and debt when bailout expectations change, estimating whether big banks benefit from
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