Low Rates May Be Biggest Systemic Risk: Moszkowski

The video discusses the impact of financial regulations like Dodd Frank, Volcker rule, and Basel 3 on banks, particularly in terms of liquidity and market making. It highlights the systemic risks posed by low interest rates and weak global economic conditions. The discussion also covers how banks are positioning themselves for potential interest rate increases, emphasizing the importance of managing short-term rates and risk.

What are the main objectives of the Dodd Frank Act as discussed in the text?

How has the implementation of Dodd Frank affected banks' ability to take risks?

What concerns are raised about the liquidity in the market following the Dodd Frank regulations?

Discuss the implications of the 'total loss absorbing capacity' concept mentioned in the text.

What are the potential risks associated with regulatory arbitrage as highlighted in the discussion?

How do low interest rates impact the banking sector according to the text?

What strategies are banks considering to position themselves for potential rate increases?