All G-20 countries have explicitly and repeatedly confirmed that no systemically important institution will be allowed to fail. In some countries, there has been direct support for banks through capital injections using public money. Support has also taken less direct forms, such as liquidity support to help keep open the markets on which banks and market participants depend.
3 These difficulties in measuring systemic risk have important implications for the practical implementation of macroprudential policy and for the accountability of the macroprudential authority. As the new authorities start working, they will have to base their decision-making on operational arrangements. The year that has just begun will be very important in this respect.