Thursday, December 26, 2013
Chinese Banks Started the Prevention of "Too Big to Fail"
ANBOUND
"Living will" has been comprehensively introduced to the regulatory practices in China's financial industry. ANBOUND research team believes that the issuance of “living wills” by China Merchants Bank and the Bank of China in succession indicates that the Chinese banks have started the prevention of “too big to fail”. Theoretically, the “living will” is meant to alert financial institutions in advance. However, its real effect in practice remains to be tested.