3  that they are likely to be more prone to a systemic collapse after a very bad aggregate shock. A simple look at what happened to some large international banks in the latest financial crisis illustrates how real this problem can be.
5 This is also an example of how risks that may not appear significant from a microprudential perspective may actually become much more worrisome if assessed through a macroprudential approach – a viewpoint whose importance Andy was among the first to stress. Another channel through which TBTF status can endanger financial stability relates to the balance between idiosyncratic and aggregate risk.