Jump to ContentJump to Main Navigation
Crises and OpportunitiesThe Shaping of Modern Finance$
Users without a subscription are not able to see the full content.

Youssef Cassis

Print publication date: 2011

Print ISBN-13: 9780199600861

Published to Oxford Scholarship Online: May 2011

DOI: 10.1093/acprof:oso/9780199600861.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 03 December 2020



(p.53) 3 Banks
Crises and Opportunities

Youssef Cassis (Contributor Webpage)

Oxford University Press

Massive bank runs and a succession of bank failures are only one aspect of banking crises, and not necessarily the main one as far as large banks are concerned. The main issue has been whether the banks had become too big to fail, which implies that big banks no longer fail in times of financial crises, though they can run into serious difficulties. One corollary of this situation is that banks could or should be cut down to size in order to avoid pitfalls: on the one hand, the ‘moral hazard’ created by the certainty of being bailed out in case of failure, and, on the other hand, the systemic effects of the collapse of a big bank. This chapter discusses these issues from a historical perspective, by considering how banks have fared in the wake of eight major financial crises that have shaken the advanced economies since 1890. Three main questions are addressed in this chapter. First, to what extent have big banks actually been allowed to fail? Second, have financial crises been followed by waves of consolidation? And, third, how have large banks performed in the aftermath of a crisis — especially in terms of growth and profits?

Keywords:   financial crisis, banking crisis, bank failures, big banks, consolidation

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .