Cohen: Stress Tests Show U.S. Banks Well Capitalized

Cohen: Stress Tests Show U.S. Banks Well Capitalized

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Interactive Video

Business

University

Hard

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The video discusses the results of recent stress tests, highlighting the strong capitalization of US banks. It raises concerns about future developments, such as the G SIB surcharge and Basel IV, which may increase capital requirements. The discussion also touches on the potential risks of excessive capital and the lack of correlation between high capital levels and low losses. A comparison between US and European banks' capital positions is made, noting the divergence in their approaches.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What role do macroeconomic assumptions play in the stress tests according to the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What concerns were raised regarding the future of stress tests and capital requirements?

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