Yellen Says Fed Helped Make Financial Institutions Safer

The video discusses measures taken to make the financial and banking systems safer post-financial crisis. It highlights the introduction of stress tests, which assess banks' capital adequacy under adverse conditions, and improvements in supervision and capital planning. Additionally, it covers reforms in the shadow banking sector, including changes to money market funds and derivatives markets, to reduce systemic risks. The video emphasizes the need for ongoing vigilance to manage risks outside regulated sectors.

What measures have been implemented to make the banking system safer and sounder?

How did stress testing come about and what was its purpose?

What were the consequences for banks that did not meet capital requirements during stress tests?

In what ways has the supervision of large banking organizations changed?

What reforms have been made to the shadow banking system to enhance its safety?