Home /
Expert Answers /
Finance /
with-references-please-a-during-the-covid-19-pandemic-banks-have-been-more-resilient-than-during-pa951
(Solved): with references please (a) During the COVID-19 pandemic, banks have been more resilient than during ...
with references please
(a) During the COVID-19 pandemic, banks have been more resilient than during the global financial crisis. Briefly discuss the reasons why this may be the case. [10 marks) (b) What is the "too big to fail" concept? Explain how moral hazard may impact the behaviour of banks and discuss the arguments for and against "too big to fail". [10 marks]
Expert Answer
ANSWER a) In the dark days after the 2008 crisis, national and supranational regulators took stock of the system and imposed stringent new capital requirements, stress tests, and other means of building resilience. Many bank leaders grumbled about th