The Financial Stability Board (FSB) has determined that too-big-to-fail banks are more prepared to handle a domestic or global crises than they did during the 2008 global financial crisis. In a report released earlier this month, the FSB determined banks learned valuable lessons about how to prepare for, and respond to, serious economic issues.
Banks are in a Much Stronger Position
“Banks entered the current crisis in a much stronger position than they did the global financial crisis,” Randal K. Quarles, Vice Chair for Supervision and Chair of the Financial Stability Board, said in a speech on July 7.
Big Banks either collapsed or received taxpayer-funded bailouts following the great recession more than a decade ago. The G20 implemented too-big-to-fail (TBTF) reforms, implemen…