Too Big to Fail Subsidy Still Worth Almost £6bn Per Year

UK banks are still receiving an implicit subsidy of £5.8bn a year according to a report produced by the NEF. The subsidy is often referred to as the ‘too big to fail’ subsidy which effectively provides free state-backed insurance against bankruptcy for the major banks. This enables banks to take risks (and rewards) that are not open to companies operating in regular markets.

A link to the story and full report is here:

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