The "too connected to fail" (TCTF) concept refers to a financial institution which is so connected to other institutions that its failure would probably lead to a huge turnover in the whole system.[1] Contrary to the "too big to fail" theory, this approach takes into consideration the highly connected network feature of the financial system rather than the absolute size of one particular institution.
- ^ Haldane, A.G. & May R. M. (2011). Systemic Risk in Banking Ecosystems. Nature. 469(7330): 351–5. doi:10.1038/nature09659.