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In the world of banking, does size matter?

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It was bound to happen. After pouring tens of billions of dollars, pounds and euros: as much as 5.5 per cent of the GDP of advanced economies, according to the International Monetary Fund, governments began to revolt. “If a bank is too big to fail, then it is too big,” the governor of the central bank of Belgium told a newspaper at the end of June. If this is true, then what about the corollary: “Small is beautiful?” If bankers’ bonuses are being capped, should the size of their banks be capped as well?

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en

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text/html

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http://knowledge.insead.edu/finance-banking-Dermine-090922.cfm?vid=306

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