Big banks versus small banks: size doesn't matter

In my very first Forbes post I've sidestepped the argument about whether big banks or small banks are best. Both can behave badly and cause systemic crises. It's not about size of banks, though how they behave does matter. It's about the fact that the entire banking system is "too big to fail", and by restricting public support and applying regulation inconsistently we place the entire financial system at risk.

You can read the whole post here.


Comments

  1. In my country, there was small bank caused systemic crises in 2011, so I agree abaou "size doesn't matter"..

    ReplyDelete
  2. Yes, sometime systemic crises maybe caused by small bank,,

    ReplyDelete
  3. I would like to underline your words: Both can behave badly and cause
    systemic crises. It's not about size of
    banks. Absolutely, conventional banks need reformed if this doesn't sound conservative.

    ReplyDelete

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