Jul 9, 2018
Another year and another bank stress test. Does it matter? Have banks found new and riskier forms of lending that the regulators can’t keep up with? We all know that derivatives keep increasing and getting more risky. While progress has been made in reigning in risky real estate loans, banks are again showing a tendency to lower lending standards. But it’s what we can’t see that could be disastrous. For now the problem is isolated to Deutsche Bank, but for how long?