Question

Referring to both theory and real examples in your study material, critically assess to which extent the lessons learned from the Global Financial Crisis have made banks robust to the current challenges of international banking in the postpandemic era.

Answer 1

The lessons learned from the Global Financial Crisis have made banks more robust to the current challenges of international banking in the postpandemic era.

Step-by-step explanation:

The lessons learned from the Global Financial Crisis have made banks more robust to the current challenges of international banking in the postpandemic era to a large extent.

Following the crisis, banks have implemented stricter regulations and risk management practices to prevent a similar collapse.

For example, banks now have higher capital requirements and stress testing exercises to assess their resilience.

Additionally, banks have improved their liquidity management by holding more liquid assets and diversifying funding sources. This has helped them navigate the liquidity challenges posed by the pandemic.

Overall, while there are still risks in the international banking system, the lessons from the Global Financial Crisis have contributed to making banks more resilient.