Economic impact of the G20's too-big-to-fail reforms

FRAME content on too-big-to-fail reforms

FRAME records quantitative estimates of the impact of the G20's too-big-to-fail (TBTF) reforms on bank funding costs, credit ratings as well as contingent claims (see chart).

The number of records on the impact of a given TBTF reform on a given economic variable varies with the number of studies available in the literature. The effect of a bank being systemically important ("SIB effect") on its funding costs ("Bank funding cost"), ie the measurement of SIB's funding cost advantage, includes the most estimates.

For more information, see "".

 

By Angelica Dominguez-Cardoza and Martin Voelpel (Deutsche Bundesbank).

The views expressed in the studies referenced in FRAME are those of their authors and do not necessarily reflect ours, or those of the Bundesbank, FSB and BIS. We are nonetheless responsible for any error or omission in the reporting of those studies.

Contributors

Deutsche Bundesbank Financial Stability Board