Sentences with phrase «systemic bank run»
It is the perfect recipe for a systemic bank run.
https://www.nakedcapitalism.com/ Not exact matches
«If the test were run on the basis of their latest capital positions, both banks would meet their CET1 capital ratio and Tier 1 leverage ratio systemic reference points.»
Once banks reach a certain size, the state is forced to bail them out if they run into trouble because of the systemic risks they pose to the economy.
Iceland's banking sector was allowed to grow to a disproportionate size relative to Iceland's GDP, including by offering foreign currency savings accounts at attractive interest rates, which implicitly put the Icelandic government, and therefore the Icelandic people, on the hook for ultimately repaying other countries when Iceland's banking system collapsed and a systemic Icelandic bank run occurred.
But I don't see why insurance companies couldn't handle bank runs that weren't part of systemic financial crises.