What really defined the CLICO crisis, however, was the systemic aspect of a large financial institution failing and dragging others with it into the abyss. 4  BIS central bankers’ speeches  This brings me to the fourth initiative the Central Bank is undertaking to manage our financial system.
Given these enormous costs related to banking crises, there seems to be a change of paradigm since the beginning of the current crisis in 2008, with a tendency to return to increase the degree of financial regulation and with a more active use of fiscal policies in order to counteract or avoid banking crises in advanced economies.