Tarullo: We May See Some Regional Banks Atrophy

Tarullo: We May See Some Regional Banks Atrophy

Assessment

Interactive Video

Business

University

Hard

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The video discusses the role and challenges of regional banks in the US, highlighting their importance in lending to midsize companies. It covers recent regulatory changes following bank failures and the need for strong regional banks to ensure competition. The video also examines capital requirements for large banks and their impact on financial stability. Finally, it explores monetary policy and the debate over interest rates, focusing on the concept of the natural rate of interest.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of U.S. commercial banking assets do midsize regional banks account for?

10%

20%

30%

40%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a significant factor leading to the failures of banks like Silicon Valley and First Republic?

Poor customer service

High operational costs

Lack of customer deposits

Unrecognized losses on bond portfolios

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one proposed way to strengthen the regional banking system?

Increasing the number of midsize banks

Reducing the number of banks

Focusing only on large banks

Merging all regional banks

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern with the current stress tests for banks?

They are too expensive

They have become predictable

They are not comprehensive

They are too difficult

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the optimal range for capital as a percentage of risk-weighted assets according to academic work?

5-6%

20-21%

10-11%

14-15%

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the 'R Star' in monetary policy?

A fixed interest rate

A real-time data point

The neutral real rate of interest

A government-set rate

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might the natural rate of interest be considered an 'invisible' in monetary policy?

It is easily observable

It is a theoretical concept

It is set by the government

It is derived from real-time data