Competing against Sifis ‘leads to higher risks’

But research finds weaker implied sovereign support reduces impact on non-Sifi competitors


Implicit government guarantees on banks deemed too big to fail drive smaller competitors to take on more risk, researchers have found. The findings add further justification to regulators’ efforts to ensure investors, rather than taxpayers, carry the cost of failure at a systemically important financial institution (Sifi).

Rafael Schiozer, of the think-tank Fundacao Getulio Vargas, together with Frederico Mourad and Ramon Vilarins of the Banco Central do Brasil, have measured the risk of banks

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: