We analyze whether four market-based measures of the global systemic importance of financial institutions offer early warning signals during three financial crises. The tests based on the 2007/2008 crisis show that only one measure (∆CoVaR) consistently adds predictive power to conventional...

This article considers the challenges for policy makers posed by the distress that can afflict large and complex financial institutions (LCFI) with a global reach. It explores the impediments to solutions that require close cooperation among national regulators and argues in favor of a pragmatic...