GOLDILOCKS
"BASEL COMMITTEE MUST STOP GLOBAL BANKS FROM CONTINUING TO CHEAT ON KEY REGULATORY TESTS AND ENDANGERING FINANCIAL STABILITY"
These tests include examinations of the bank's capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to systemic risk.
The above sentence is otherwise known as stress tests. A stress test determines how well that a bank is capable of handling a liquidity crisis.
The OCC and FDIC conduct several tests to measure a bank's capacity to withstand transitional periods like we are in at the present time.
These tests are conducted to prevent crisis interventions and collapse situations that could become a contagion to other Banks.
Tighter controls on the new digital banking system is not only expected, but it will determine the compliance level a bank has in their standing going forward.
© Goldilocks
https://bettermarkets.org/newsroom/basel-committee-must-stop-global-banks-from-continuing-to-cheat-on-key-regulatory-tests-and-endangering-financial-stability/
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