This Great Graphic was posted in the Financial Times by James Mackintosh. It depicts banking assets as a percentage of GDP for a number of euro area members.
We take at face value two propositions from euro area officials. First, that the widening of the participants in the bail-in process, which is reflected in the new Cyprus agreement, is a template for future aid programs. Second, that the size of the financial sector in many euro area countries will be reduced over time.
It follows that those members with the largest financial system relative to GDP are the most vulnerable to this restructuring. The way to address too-big-to-fail is not only reducing the size of the financial institutions but also reducing the size of the financial sector itself.
Great Graphic: Banking Assets Relative to GDP
Reviewed by Marc Chandler
on
March 25, 2013
Rating:
Reviewed by Marc Chandler
on
March 25, 2013
Rating:
