FSB flags ‘gaps’ in too-big-to-fail reforms

The Bank for International Settlements, Basel
Photo: Ulrich Roth

The Financial Stability Board warns that despite some progress, reforms designed to end ‘too big to fail’ (TBTF) still contain gaps.

The FSB says public money is still being used to rescue some banks, which may reflect incomplete work to install resolution frameworks. Furthermore, data is patchy, hampering efforts to fully judge the effectiveness of the reforms, and implying some unintended consequences could still be lurking in the details of bank balance sheets.

Overall, however, the FSB

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