Too big to fail
adjective
Describing a business or organization that is so large and so interconnected with other businesses and the economy, that its failure would be disastrous, and the government or other authorities have to step in to avoid this.
Many people worry that the banks are 'too big to fail', meaning that if they were to go under, it would cause a major financial crisis.
Often appears as...
- banks are too big to fail
- corporations are too big to fail
Usage tips
Formal
Economic
adjective
Describing a business or organization that is so large and so interconnected with other businesses and the economy, that its failure would be disastrous, and the government or other authorities have to step in to avoid this.
Many people worry that the banks are 'too big to fail', meaning that if they were to go under, it would cause a major financial crisis.
Often appears as...
- banks are too big to fail
- corporations are too big to fail
Usage tips
Formal
Economic
Definition 1 of 1
Pro Tip 1/3Economic Impact
Understand it suggests the collapse of such an entity can severely damage the economy.
If this airline goes bankrupt, it's too big to fail; the government will likely intervene.
Pro Tip 2/3Government Role
Recognize that the term implies governmental or authoritative intervention is considered necessary.
This bank is too big to fail; it's expected to receive a bailout.
Pro Tip 3/3Interconnectedness
The term refers to organizations that have many dependent relationships with other entities.
Our car factory is too big to fail; too many jobs and small businesses rely on it.
Pro Tip 1/3Economic Impact
Understand it suggests the collapse of such an entity can severely damage the economy.
If this airline goes bankrupt, it's too big to fail; the government will likely intervene.
Pro Tip 2/3Government Role
Recognize that the term implies governmental or authoritative intervention is considered necessary.
This bank is too big to fail; it's expected to receive a bailout.
Pro Tip 3/3Interconnectedness
The term refers to organizations that have many dependent relationships with other entities.
Our car factory is too big to fail; too many jobs and small businesses rely on it.
Pro Tip 1/3Economic Impact
Understand it suggests the collapse of such an entity can severely damage the economy.
If this airline goes bankrupt, it's too big to fail; the government will likely intervene.
Pro Tip 2/3Government Role
Recognize that the term implies governmental or authoritative intervention is considered necessary.
This bank is too big to fail; it's expected to receive a bailout.
Pro Tip 3/3Interconnectedness
The term refers to organizations that have many dependent relationships with other entities.
Our car factory is too big to fail; too many jobs and small businesses rely on it.
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