The Evolving Nature of Banking, Bank Culture, and
Bank Runs
https://www.federalreserve.gov/newsevents/speech/files/bowman20230512a.pdf
Fed Governor Michelle W. Bowman:
Banking simply cannot work in its current and historical form without risk, so unless the goal is to change the nature of banking, the task of policymakers and regulators is not to eliminate risk from the banking system, but rather to ensure that risk is appropriately and effectively managed. Fundamentally, this is the basis for the bank regulatory frameworks that exist around the world. In countries with well-functioning and appropriately regulated banking systems, banks serve an indispensable role in credit provision and economic stability. The goal is to create and maintain a system that supports prudent banking practices, and results in the implementation of appropriate risk management. No efficient banking system can eliminate all bank failures. But well-designed and well-maintained systems can limit bank failures and mitigate the harm caused by any that occur.
https://www.federalreserve.gov/newsevents/speech/files/bowman20230512a.pdf
Fed Governor Michelle W. Bowman:
Banking simply cannot work in its current and historical form without risk, so unless the goal is to change the nature of banking, the task of policymakers and regulators is not to eliminate risk from the banking system, but rather to ensure that risk is appropriately and effectively managed. Fundamentally, this is the basis for the bank regulatory frameworks that exist around the world. In countries with well-functioning and appropriately regulated banking systems, banks serve an indispensable role in credit provision and economic stability. The goal is to create and maintain a system that supports prudent banking practices, and results in the implementation of appropriate risk management. No efficient banking system can eliminate all bank failures. But well-designed and well-maintained systems can limit bank failures and mitigate the harm caused by any that occur.
My take:
Those predicting a soft economic landing may be in for a rude awakening
https://thehill.com/opinion/finance/3987045-those-predicting-a-soft-economic-landing-may-be-in-for-a-rude-awakening/
https://thehill.com/opinion/finance/3987045-those-predicting-a-soft-economic-landing-may-be-in-for-a-rude-awakening/
What triggered Silicon Valley Bank’s collapse?