Thus, they have a funding advantage over banks that are not systemically important. All this makes the too-big-to-fail problem even bigger. Against this backdrop, making banks more resilient can only be the first step toward a more stable financial system. The next step must be to ensure that even large and interconnected banks can fail without causing a systemic crisis.
But we need a system that better balances the immediate imperatives of the short run with the important building blocks for longer-run prosperity. That’s what I want to talk about today. We aspire to an international monetary and financial system that favours inclusive and sustainable growth.