New bank business models could undermine stability, panellists warn
Regulation and low rates forcing banks to adapt in unpredictable ways
Financial regulation and low interest rates were necessary in the aftermath of 2008, but may be setting up a new crisis as bank business models adjust, panellists said today (January 12) during an event at the Banque de France.
Beatrice Weder di Mauro, a professor of economics at the University of Mainz, pointed to signs of "deglobalisation", as banks pull back from riskier markets and concentrate their activities in home regions.
The effect of this was not fully clear, she noted – on the one
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