G-20 pursues systemically important banks, despite abandoning levy

Banks will still face new constraints as the G-20 continues with plans to prevent them from posing a systemic threat.

The Group of 20 leading economies this weekend shelved plans to introduce a bank levy globally. But that won't let systemically important banks off the hook, as the bloc pursues other punitive regulatory measures to prevent them from becoming too big or interconnected to fail.

The Financial Stability Board (FSB) is preparing a shortlist of possible measures to be presented for consideration at the next G-20 summit in Toronto on June 26–27. The list is expected to include details of possible