Credit Suisse debacle: Do banks need more capital?
A special parliamentary session on Credit Suisse is taking place this week. One frequently heard demand is for banks to have higher capital ratios. But would more capital have saved Credit Suisse?
The hope is based on a simple formula: Higher capital equals more stable banks! But it’s not quite so clear-cut. In this Geldcast Update, we take a closer look at some key questions: Why are banks unstable in the first place? What happened at Credit Suisse in its last days? Would it have survived with higher capital? Or are there better regulatory approaches?
Also, in this Geldcast Update, we clarify what the difference is between weighted equity and unweighted equity. And we talk about Common Equity Tier 1 (CET1) and Additional Tier 1 (AT1) capital.
From stock exchanges and bitcoin to inflation and monetary policy – the Geldcast Update features the latest from the world of international finance. Clear and entertaining for everyone who wants to stay up to date. The podcast is hosted by monetary economist and business journalist Fabio Canetg.
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Author Fabio Canetg completed his doctorate in monetary policy at the University of Bern and the Toulouse School of Economics. Today he is a lecturer at the University of Bern. As a journalist, he works for SRF Arena, Republik Magazin and SWI swissinfo.ch, where he hosts the monetary policy podcast “Geldcast”.
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