July 16, 2024

Why do not end banking crises

Why do not end banking crises

The banking system is in free fall

  • Regulators and politicians around the world are trying to allay fears of a new banking crisis. But the bankruptcy of Silicon Valley and the emergency merger of UBS and Credit Suisse were not the end.
  • Even after the experiences of 2008, it was not possible to regulate banks in such a way that risks did not frequently emanate from the sector.
  • Ideas for effective reforms have been around for a long time. Banks now need not less regulation but more regulation.

Sometimes there is something fateful about serendipity. On every Monday, the day after the dramatic rescue of Credit Suisse, Federal Finance Minister Christian Lindner (FDP) held an appointment with top managers from German financial institutions. The so-called “CEO Roundtable” has been planned for months. But now the ministry is concerned that the meeting could be interpreted as a hastily convened round of crisis. So what do we do? Cancellations may cause more excitement. decide against.

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