What the FSB's New Risk Rankings Mean for Banks

The video discusses the international consensus on bank risk rankings post-crisis, highlighting how these rankings are used by global regulators to assess the risk levels of banks. It explains the impact of these regulations on banks' operations and finances, as they prepare for full implementation by January 2019. The FSB's role in determining risk through various indicators is explored, along with the controversies and differing regulatory responses worldwide. The video concludes with a look at future implications for banks as they adapt to these changes.

What is the purpose of international bank risk rankings?

• To assess technological advancements in banking

• To evaluate customer satisfaction

• To reflect international consensus on bank risk

• To determine the profitability of banks

How are banks preparing for the new rules effective from January 2019?

• By reducing assets and managing capital

• By investing in new technologies

• By expanding their global operations

• By increasing their workforce

What factors does the FSB consider when determining bank risk?

• Technological infrastructure

• Bank size and interconnectedness

• Customer feedback

• Marketing strategies

Why might there be controversy over the FSB's risk assessments?

• Due to their emphasis on customer satisfaction

• Because they focus solely on domestic banks

• Due to differing levels of capital requirements imposed by regulators

• Because they are based on outdated data

Which country is mentioned as having higher capital requirements than the FSB's recommendations?

• United States

• Australia

• OS (Organization for Security)

• United Kingdom