Lagarde Says SVB-Like Crisis 'Very Unlikely' in Europe

The video discusses the differences in banking regulations between the US and Europe, focusing on capital and liquidity ratios. In the US, around 14 banks are checked for compliance, while Europe supervises about 2000 banks with strict adherence to Basel 3 rules. The US relaxed its liquidity coverage ratio requirements in 2019, making its system less robust compared to Europe. The video also examines the Silicon Valley Bank case, highlighting the risks of high concentration in specific sectors and uninsured deposits. Overall, the European banking system is portrayed as more robust and less prone to crises like the 2008 financial crisis.

What measures are in place in Europe to ensure banks comply with financial regulations?

Why is the banking system in Europe considered more robust compared to the situation in 2008?