Sebastian Moenninghoff provides an extensive overview of the status of the 'Too-Big-to-Fail'
doctrine post-crisis and develops the first comprehensive framework to categorize and discuss
the full range of major policy options for regulating banks. Governments need to actively
manage their exposure to banking system risk with the optimal policy mix depending on risk
return preferences of a society and an economy's institutional setting. The new regulation for
global systemically important banks developed by international regulators following the
financial crisis is a significant step in expanding the tools to manage government exposure to
banking system risk.
