The problem with IRB is that these models differ and are subjective. In the past, IRB models were also used to minimize capital requirements to increase return on capital (moral hazard) and lead to vulnerable banks (crisis 2008) that destabilized the economies severely and banks were bailed out with tax payers money. To prevent this, supervisors have limited the use of IRB models by minimal capital floors based on the standard method. This video is only promoting the bank shareholders objectives.
My understanding is that Basel IV banking compliance is that banks based their finances on real assets ie. gold - there is NO mention of this in this video!
Both inaccurate and dishonest. Inaccurate in that it confuses capital with reserves, dishonest in that it does so with a sinister motive of increasing bank profitability (enjoyed by insiders) at the expense of bank fragility (borne by taxpayers)
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The problem with IRB is that these models differ and are subjective. In the past, IRB models were also used to minimize capital requirements to increase return on capital (moral hazard) and lead to vulnerable banks (crisis 2008) that destabilized the economies severely and banks were bailed out with tax payers money. To prevent this, supervisors have limited the use of IRB models by minimal capital floors based on the standard method. This video is only promoting the bank shareholders objectives.
Very useful video, although quite biased, I find it very clear and explanatory
very one-sided and opinionated video. if anything it leads to, it is misunderstanding
capital is not free? expect in a low and negative real rate environment
I mean we need to get rid of debt money altogether.
Financial matrix we are in here.
My understanding is that Basel IV banking compliance is that banks based their finances on real assets ie. gold - there is NO mention of this in this video!
Both inaccurate and dishonest. Inaccurate in that it confuses capital with reserves, dishonest in that it does so with a sinister motive of increasing bank profitability (enjoyed by insiders) at the expense of bank fragility (borne by taxpayers)
this is not what I understand to be the case , considering the video was made 6 years ago and Basel IV is only getting introduced in 2025
Capital its not free? With negative intrest rates too?
The Dutch Banking Society refers to this video as -ehrm- wholly objective explanation of Basel requirements....
What a terrible lobby video
My thoughts exactly. It comes as no surprise that this video stems from Denmark. They are second on the list in terms of RWA impact. Salty salty Danes
@@mikeparent8030 very true..
Some segments in the video are stamped not adjacent to each other
Lol fake money is out the door
LOL . Video by BANKSTERS for the benefit of BANKSTERS.
Very unbias
Lol