too-big-too-fail

too-big-too-fail

Government practices that protect large banking organizations from the normal discipline of the marketplace because of concerns that such institutions are so important to markets and their positions so intertwined with those of other banks that their failure would be unaccrptably disruptive, financially and economically.
References in periodicals archive ?
Fitch Ratings yesterday said that while the central bank will not publicly identify the "too-big-too-fail" banks - known as domestic systemically important banks (D-SIBs) - the country's three largest lenders would decidedly have to increase core capital higher than minimum under Basel 3.
It is important to understand that, even in a circumstance in which the too-big-too-fail doctrine is invoked, the stockholders, bondholders, and senior managers of the insolvent bank lose.