IMF weighs in to too-big-to-fail debate

Report looks at current proposals to deal with systemic risk and bank failures

The International Monetary Fund (IMF) warns in its Global Financial Stability Report, due to be published next week, that the absence of adequate tools is hampering efforts to deal with large banks posing a potential systemic risk.
   
The report also says regulators need to be given more incentives to address such risks and avoid a tendency to be too soft when dealing with large and systemically important institutions. Supervisors and regulators have been widely criticised for failing to act