G30 report, Bank Failures and Contagion: Lender of Last Resort, Liquidity, and Risk Management, proposes fixes to the banking system to enhance resilience
WASHINGTON, Jan. 9, 2024 /PRNewswire-PRWeb/ -- The Group of Thirty (G30) today published Bank Failures and Contagion: Lender of Last Resort, Liquidity, and Risk Management. The study, chaired by William C. Dudley, former President of the Federal Reserve Bank of New York, analyses the bank failures of March 2023, dissects the causes behind the collapses, and proposes reforms designed to minimize the contagion risks in the future and increase the resilience of banks and the banking system.
- The Group of Thirty (G30) today published Bank Failures and Contagion: Lender of Last Resort, Liquidity, and Risk Management from the G30 Working Group on the 2023 Banking Crisis.
- WASHINGTON, Jan. 9, 2024 /PRNewswire-PRWeb/ -- The Group of Thirty (G30) today published Bank Failures and Contagion: Lender of Last Resort, Liquidity, and Risk Management.
- The failures were triggered by a combination of poor business models, weak risk management, and a rapidly shifting macroeconomic environment.
- The report proposes reforms to limit contagion when bank failures occur and mitigate broader economic consequences.