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World Bank Guidelines on the Treatment of Foreign Direct Investment

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The large size of the four banks relative to GDP and the banking system behooves careful attention to their vulnerabilities and resilience to shocks. 2 Any distress among these banks could have a sizable impact on the financial sector and the real economy in Australia and New Zealand. 3 Moreover, they may be perceived by the markets as too big to fail, which implies they could pose a potential fiscal liability. Against this backdrop and in the context of the ongoing discussion for systemically important global banks, the merits of higher capital requirements, complemented by intensive supervision, need to be considered for...
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World Bank Guidelines on the Treatment of Foreign Direct Investment

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