China Said to Plan Major Expansion of Too-Big-to-Fail

The video discusses ongoing efforts to mitigate risks in the financial system, highlighting concerns about growing debt and systemic issues. It addresses the impact of the US trade war and the regulatory focus on shadow banking. The discussion shifts to the scrutiny of traditional financial sectors like banks and insurance companies. Finally, it covers the process of identifying systemically important financial institutions, with regulators drawing up a shortlist for further evaluation.

What is the primary concern mentioned in the efforts to derisk the financial system?

• Decreasing foreign investments

• Rising unemployment

• Growing debt pile

• Increasing inflation rates

Which sector have regulators primarily focused on before shifting their attention?

• Insurance companies

• Traditional banking sector

• Shadow banking sector

• Brokerage firms

What ongoing international issue is affecting the financial system?

• Global pandemic

• Cybersecurity threats

• Trade war with the US

• Climate change

How many institutions are initially believed to be on the list of systemically important financial institutions?

• 30

• 10

• 20

• 50

What is the purpose of creating a shortlist of financial institutions?

• To evaluate their systemic importance

• To increase their market value

• To merge them with larger banks

• To reduce their operational costs