• Can You Ever Actually De-Risk The Banking System?

  • Nov 11 2024
  • Length: 34 mins
  • Podcast

Can You Ever Actually De-Risk The Banking System?

  • Summary

  • Over the last roughly 15 years, we've seen a migration of certain types of risks outside of regulated deposit-taking banks. Private credit has boomed, shifting lending activity away from the banks. Multi-strategy hedge funds have scooped up a lot of the proprietary trading activity that was banned under the Volcker Rule. On paper, this looks good. It seems like various risks have been removed to less systemic institutions. But does the risk find its way back in? What happens when these outside entities still rely on banks for leverage? On this episode of the podcast, we speak with Steven Kelly, the Associate Director of Research at the Yale Program on Financial Stability. We talk about where risks might lie and how regulators can stay atop of them.

    Read More:
    Era of Private Credit Returns Beating Private Equity Is Nearing an End
    Hedge Fund Basis Trade Faces Scrutiny as Regulators Mull Probe

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