Dombret warns national banking systems are too-big-to-fail
Andreas Dombret, a Deutsche Bundesbank executive board member, suggested some eurozone countries may need to downsize their banking sectors to end the too-big-to-fail problem.
In addition to removing "the implicit government subsidy for systemically important institutions", Dombret said overly large banking sectors could be shrunk. In the eurozone, the average country’s banking system is 3.5 times the size of its national GDP, he said, while in Cyprus it is around seven times.
"If the banking
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