In 2008, the collapse of the investment bank Lehman Brothers in the US led to a global crisis. Banks worldwide were in trouble and had to be rescued with hundreds of billions of taxpayers’ money. Never again, the authorities said and they took steps to prevent a recurrence. From now on, banks will have to maintain much more buffers to be able to absorb the blows of a crisis themselves. This is to prevent taxpayers from having to pay for a bank’s losses. But those buffer requirements are still far too low, fears Harald Benink, professor of banking and finance at Tilburg University.
Fear of a new financial crisis: can banks absorb the blow now? | Economy
Source link Fear of a new financial crisis: can banks absorb the blow now? | Economy