This is to be done by lessening the likelihood of failures and circumscribing the attendant damage; creating mechanisms for their orderly management; and centralizing the channels that transmit their effects, such as derivative instruments, which nowadays are traded outside regulated markets and bilaterally. Criteria must be devised to determine the systemic importance of an institution.
This will have to be done without compiling lists of intermediaries, which would create an unjust segmentation of the banking system and could have adverse effects on risk-taking.