Banks in the post-Covid-19 world
Tuesday 29 June 2021
We thought the banking sector was forever changed by the Global Financial Crisis (GFC): e.g., lower leverage, better risk management, greater transparency, etc. Yet, the Greensill Capital bankruptcy, and the multibillions in losses plus dividend cuts, capital increases, and senior management layoffs at Credit Suisse -- following the Archegos debacle and the Wirecard accounting fraud -- bring back a bitter taste of past troubles. It would be unfair though not to recognise that the financial system and banks in particular managed their way through the Covid-19 crisis, the largest economic shock in modern history, thanks to the efforts made over the past decade to improve their robustness...