Schroders' Van Steenis Wants European Stress Tests

The video discusses the results of US bank stress tests and the implications of the Mnuchin report. It highlights the differences in stress test frequency between the US and Europe, emphasizing the importance of regular checks for bank health. The video also outlines three key lessons Europe can learn from the Mnuchin report: ensuring credit flow, acting quickly on financial issues, and understanding the link between monetary policy and bank regulation.

What are the pros and cons of conducting stress tests every second year in the US?

What is the connection between monetary policy and bank regulation as discussed in the text?