[Finance] How Much Have Banks Really Cut Their Risks?2017-10-09 14:31:38Hit:339
- Writer하유성
- Linkhttps://www.bloomberg.com/view/articles/2017-09-11/how-much-have-banks-really-cut-their-risks
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Written in Oct 09, 2017
The Trump administration is looking to ease financial-strength requirements for big banks, on the grounds that they've already done enough to avert another crisis. But, in this article, the author is concerned banks have not been safer than in 2009.
The article asserts that value at risk can be misleading. Because, if markets have been calmer, it will register less risk even if the nature of bank's assets hasn't changed. For that reason, the article suggests using 'adjusted value at risk' as a solution. As a result of comparing the value of banks, it was only 25% less than in 2009, and it is increasing more than last year.
For the above reasons, the author says financial reform needs some rethinking.
The Trump administration is looking to ease financial-strength requirements for big banks, on the grounds that they've already done enough to avert another crisis. But, in this article, the author is concerned banks have not been safer than in 2009.
The article asserts that value at risk can be misleading. Because, if markets have been calmer, it will register less risk even if the nature of bank's assets hasn't changed. For that reason, the article suggests using 'adjusted value at risk' as a solution. As a result of comparing the value of banks, it was only 25% less than in 2009, and it is increasing more than last year.
For the above reasons, the author says financial reform needs some rethinking.