Open AccessBank size as a source of competitive advantage of Chinese global systemically important banks
Author(s) -
Magdalena Markiewicz
Publication year - 2020
Publication title -
gdańskie studia azji wschodniej
Language(s) - English
Resource type - Journals
eISSN - 2353-8724
pISSN - 2084-2902
DOI - 10.4467/23538724gs.20.033.12870
Subject(s) - too big to fail , market liquidity , financial system , business , systemic risk , financial stability , financial crisis , liquidity risk , financial market , finance , economics , macroeconomics
During the financial crisis in 2007–2009 banks all around the world suffered liquidity problems and were a subject to a system stability testing. The problems of large financial institutions, such as Bear Sterns, Fannie Mae or Freddie Mac, drew attention to the issue of financial liquidity more than ever in 2007. After the collapse of Lehman Brothers a question was raised about the stability and system security of the largest institutions in the financial system. Credit institutions recognised as systemically important, are distinguished by the enormous size of assets, which creates the risk of being too big to fail or too important to fail. The extent of links with other institutions on the market through various market segments makes them also too connected to fail.