Sebastian Schich, Oana Toader

To Be or Not to Be a G-SIB: Does It Matter?

  • Article
  • pp. 169-192
  • DOI: 10.12831/88826
  • Abstract

Keywords: Bank Failure Resolution; G-SIB; Too-big-to-fail; Implicit Guarantees.

Elements of recent bank regulatory reform directly focus on ending the "too-big-to-fail" phenomenon. As part of these efforts, a number of banks have been designated as "globally systemically important banks" (henceforth G-SIBs) and a tighter regulatory, supervisory and resolution failure regime has been imposed on them. The present article asks what has been the effect of this special treatment on the value of implicit bank debt guarantees of these banks, as measured by credit rating uplifts. Based on a sample of 27 G-SIBs and a control group of 177 other large banks from 23 countries for the 2007 to 2015 period, the article finds that this treatment has not yet significantly altered the value of implicit bank debt guarantees for G-SIBs. They continue to benefit from a significantly higher value of implicit guarantee than other banks. The article also finds that tightened resolution practices, at the national level, have significantly reduced the value of implicit guarantees for other banks, but not for G-SIB banks.

Prima pagina articolo
Post your comment:
In order to submit your comment, you have to register, filling out the fields below. If you are already registered, please login.
* Indicates a required field
Insert first name and last name. Example: John Smith
This address is used to authenticate your account should you ever encounter problems or forget your password.
Type the characters you see in the picture
In qualità di Interessato, dichiaro di aver preso visione dell'informativa privacy redatta ai sensi dell'art. 13 del D.Lgs. 196/2003 e dell'art. 7 del D.Lgs. 196/2003, e acconsento al trattamento dei miei dati personali per le finalità indicate:
The use of this site is under a Legal notice, that I have completely read and with which I full agree [].
According to the art. 1341 c.c., authorized user explicitly agrees to the terms of Legal notice to the points: 6, 7, 8 and 9.