“Resilience needs to keep up with new challenges”
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Supervision Newsletter interview with Helmut Ettl, IMF Executive Director and former member of the Supervisory Board. He looks back at the financial crisis, the resolution of Sberbank Europe and current risks.
Key points
- The Sberbank Europe case showed that a geopolitical shock can trigger a banking crisis despite good capital and liquidity ratios
- He considers European deposit insurance long overdue
- He warns of the build-up of leverage in financing the AI boom, in leveraged bets and in private credit, with links to banks that are not very visible
- Cyber risk and concentration in a few technology providers as central risks
Who is affected
Banks and supervisors
Plain-language version
Helmut Ettl, a former member of the ECB board that supervises banks (the ECB is the euro area's central bank), looks back at past crises in an interview. He warns that a lot of debt is piling up to fund the AI boom and so-called private credit, loans made outside banks. Its links to banks are hard to see, so if it goes wrong it could hit the banks that hold your money.
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Summary produced with artificial intelligence from the official publication. It may contain errors: always check the original document.
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