The post-crisis regulatory architecture : consequences for large banks

The global financial crisis of 2008 stressed the inadequacy of regulatory regimes, particularly for large banks. The crisis demonstrated the necessity to rescue large banks with public funds, to maintain payment systems and prevent “domino effect” and systemic risk. It showed clearly the inadequacy of bankruptcy procedures for global conglomerates. The crisis highlighted also problems for large banks with a wrong business model (high leverage, short-term funding from the wholesale market, inadequate identification and risk management). Thus this article aims to analyze the question whether large global banks in the post-crisis period continue to pose the risk of destabilizing the financial market and whether the post-crisis regulations in this area are sufficient.