IMF studies levy on banks based on their risk to global economy

Washington Post – The International Monetary Fund is studying a possible levy on banks based on their importance and “interconnectedness” to the world economy, part of its push for a coordinated global response to the financial crisis amid concern about the scattershot nature of proposals being offered in different countries.

Elements of the idea, which would force financial institutions to set aside more capital based on a measure of the “systemic risk” they pose to the larger economy, have been included in different proposals made in the United States and Europe.

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