Stress Testing Banking Risks
Amit discusses the limitations of current stress tests in the banking sector, highlighting how they were designed based on past crises without accounting for the unique challenges posed by today's rising interest rates. He emphasizes that regulators may have overlooked the interconnectedness of deposits and macroeconomic factors, leading to potential vulnerabilities in the financial system. Understanding the broader context is crucial, as the dynamics of risk have evolved significantly since the last major financial crisis.In this clip
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Ep23 “When Banking Fails” with Amit Seru
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