Regulators considering imposing systemic importance-based capital requirements on banks must take care to impress upon markets that the designation of a financial institution as systemically important does not mean it seen as ‘too-big-to-fail' and, therefore, in line for a bail out should it get into difficulties, the authors of a new Czech working paper say.

In Capital buffers based on banks' domestic systemic importance: Selected issues, Michal Skořepa and Jakub Seidler – both of the Czech