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...

We study the effect of financial distress in foreign parent banks on local SME financing in 14 central and eastern European countries during the early stages of the 2007-2008 financial crisis. We use survey data on applicant and non-applicant firms that enable us to disentangle effects driven by...