A safer world financial system: Improving the resolution of systemic institutions
Introduction (via Stijn Claessens Richard J. Herring Dirk Schoenmaker Voxeu)
The major economies’ financial reforms come up short on one crucial aspect – the resolution of systematically important cross-border financial institutions. This column introduces the latest Geneva Report on the World Economy, which advocates a two-tier solution to this problem – a universal approach for closely integrated countries such as EU members and a modified universal approach for other countries. It explicitly rejects the territorial or go-it-alone approach.