But European banks have also experienced a substantial increase in the cost of borrowing US dollars to fund their US dollar assets.9 While BIS data indicate that these US dollar asset positions of European banks have declined since 2008, they remain sizeable in some cases.10 An important point to note is that these are US dollar assets which require US dollar funding.
And here again, we have a global dimension. Banks that are deemed too big to fail are globally operating enterprises; resolving them requires a great deal of international cooperation. Consequently, the Financial Stability Board has developed a set of principles for the resolution of systemically important institutions.