Interconnectivities and regulatory impact [55]

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Bullet points include: Many of these have been applied more widely than just banking Idea Driven by systemic  risk concerns? Extent of application Also applied outside banking sector? (a) Restricting size of systemically important organisations Yes Limited N/A (b) Limiting types of activities firms can do Yes Greater than (a), e.g. bank ring-fencing Not to date (c) Changing market structures Yes Major, e.g. central clearing Significant impact on some organisations (d) Limiting scope to profit from others’ weaknesses e.g. banning short selling Some link Largely impractical* Effectively not (e) Improving resolvability Yes Widespread across all firm sizes Yes (f) Improving liquidity risk management processes Some link All banks Limited (g) Improving overall risk management disciplines Some link Everyone, e.g. introduction of risk management function Yes * Although market drivers (e.g. increased funding costs) have to some extent achieved the same goals

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