The "too connected to fail" (TCTF) concept refers to a financial institution which is so connected to other institutions that its failure would likely lead to a turnover in the whole system. == Relevance and systemic risk == The 2008 financial crisis highlighted that a turmoil can cause a fallback in the financial system – mainly because financial institutions form a highly interconnected network.
The "too connected to fail" (TCTF) concept refers to a financial institution which is so connected to other institutions that its failure would likely lead to a turnover in the whole system. == Relevance and systemic risk == The 2008 financial crisis highlighted that a turmoil can cause a fallback in the financial system – mainly because financial institutions form a highly interconnected network.
Source: Wikipedia "Too connected to fail" · CC BY-SA 4.0
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