Hi there.
Want to get in touch?
Case Study
WHY BANKS FAIL
Bank Failures:
Key Learnings
1. Capital provides strength but funding issues cause bank failures
2. Stable funding is essential to withstand a crisis
3. Capital & funding positions must be strong but also efficient
Northern Rock
11 September 2017
BBC Newsnight
Insights into the failure of Northern Rock
Lehman Brothers
14 September 2018
Bloomberg Markets and Finance
Former Lehman CFO Brad Hintze
Bank Regulation
16 November 2011
Ticky Fullerton & Phillip Lasker ABC News
Post crisis responses to bank regulation
Core Capital Ratios (CET1)
Despite sufficient capital levels, Northern Rock and Lehman failed
Bank Capital Ratios (CET1)
UK Banks: Wholesale Funding
< 3 Months
Since 2007 UK Banks are less reliant on short funding
Summary
1. Capital provides strength but funding issues cause bank failures
2. Stable funding is essential to withstand a crisis
3. Capital & funding positions must be strong but also efficient