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Decorrelatiom of risk. Many small redundant banks decreases odds of system threatening contagion. Large correlated businesses have catastrophic outcomes when th
by salawat 3y ago
Decorrelatiom of risk. Many small redundant banks decreases odds of system threatening contagion. Large correlated businesses have catastrophic outcomes when things do eventually happen.
- lxgr 3y agoUnless many small regional banks are all driven into the same corner by the same macro forces that have already capsized a few of them. And we still do have too-big-to-fail ones too – and they’re gaining market share.