Financial crises and measures to address them

Second instalment of our experts’ videos on banking. The latest financial crisis left deep scars that are still healing. Can we avoid going through another one? Have the authorities done anything to mitigate the impact of future financial crises on society? Our adviser Pedro Cadarso explains here the new resolution framework designed to prevent taxpayers from having to put up money in the event of a crisis, and to ensure that troubled banks can continue operating normally without spreading contagion to the rest of the system. After all these regulatory changes, with the new supervisory architecture and the banking sector’s efforts, institutions are now stronger than they were before the crisis.