Michael Milken on the Milken Institute Asia Summit

The video discusses the intersection of technology and banking, highlighting how fintech and digital companies like Alibaba are reshaping financial services. It explores the impact of digital transformation on traditional banks and the potential for new financial institutions to emerge. The discussion also covers lessons from past financial crises, emphasizing the importance of diverse financial markets. Additionally, it examines the current state of the credit market and the growth of private equity, noting the lack of covenants and the attractive returns for equity holders.

What is one of the main reasons fintech is seen as a threat to traditional banking?

• Fintech companies have stricter regulations.

• Consumers feel closer to tech companies than banks.

• Fintech companies offer better interest rates.

• Fintech companies have more branches.

How are traditional banks challenged by digital companies?

• Digital companies have higher fees.

• Digital companies provide better customer service.

• Digital companies are more adaptable to technological changes.

• Digital companies offer more physical locations.

What lesson was learned from the Asian financial crisis?

• Dependence on a few financial institutions is risky.

• Public markets are less reliable than private ones.

• Financial institutions should avoid international investments.

• Regulations should be minimized for growth.

Why is private equity currently attractive to investors?

• It is less risky than public markets.

• It allows borrowing without covenants.

• It offers high yields with strict covenants.

• It has fewer regulatory requirements.

What is a significant concern in the current credit market?

• High interest rates.

• Excessive government intervention.

• Over-reliance on traditional banks.

• Lack of maintenance covenants.