Reforms cut risk-taking by G-Sibs – ECB paper
Researchers say reforms may have at least partly resolved “too big to fail” problem for largest banks
Reforms brought in after 2012 reduced risky behaviour by global systemically important banks, or G-Sibs, without harming overall credit supply, a paper published by the European Central Bank finds.
In The impact of G-Sib identification on bank lending: evidence from syndicated loans, Markus Behn and Alexander Schramm assemble a granular dataset on loans by different kinds of banks since the reforms were introduced as part of the Basel III process. They study the reforms’ effects on banks’ loan
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