To make banks strong, do away with the regulator
As the UK economy enters the COVID-19 downturn, the Bank of England (BoE) continues to maintain that the UK banks are strongly capitalised. The…
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Can UK Banks Pass the COVID-19 Stress Test?
Eumaeus is pleased to release our report Can UK Banks Pass the COVID-19 Stress Test? on the dire state of the UK banking system as the…
Read MoreThe Bank’s ‘Stress’ Tests
My report on the Bank of England’s latest (November 2018) stress tests was published by the Adam Smith Institute on August 3rd. The purpose of the stress tests…
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Kevin’s Excellent Speech at the Mises Institute
The 2017 Stress Tests: Are US Banks Really in Good Shape?
“… equally efficacious, and equally a hoax.” – Benjamin Disraeli, 1848[1] One of the highlights of the U.S. summer for Fed watchers is the annual ritual…
Read MoreLord Liverpool and the Return to Gold
Martin Hutchinson and Kevin Dowd* * Hutchinson (karlmagnus.aol.com) is the author of the Bear’s Lear column, http://www.tbwns.com/category/the-bears-lair/. Dowd (kevin.dowd@durham.ac.uk) is professor of finance and…
Read MoreThe Bank of England’s incredible stress tests
The Bank of England’s 2016 stress tests are literally incredible. Of the seven big financial institutions covered in the exercise, only one (RBS) failed…
Read MoreAnother Reason Not to Believe the Bank of England’s Stress Tests
The Bank of England repeatedly reassures us that its stress tests demonstrate the resilience of the UK banking system. Well, let’s put the…
Read MoreHow Onerous Are Basel III’s Constraints On Bank Leverage?
It is generally acknowledged that high bank leverage was a key factor contributing to the severity of the Global Financial Crisis. For the UK,…
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Are Bank Capital Requirements Really Ten Times Higher Than Before The Crisis?
A major theme in Bank of England speeches over the last three years has been the ‘Ten Times’ story: bank capital requirements are now…
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