Some forms of risk are also not adequately priced due to the lack of a market for the price discovery process to occur. Likewise, both free-rider and externality aspects of certain payment system networks may mean that risks are not allocated accordingly and may be mismanaged. This may necessitate the public provision of certain services (e.g.
In order to account for this heterogeneity, we will probably set an absolute threshold value for total assets combined with a relative threshold value that takes national GDP into account. This quantitative threshold value will be accompanied by additional criteria in order to prevent institutions with riskier business models from benefiting from simplified rules.