The leverage ratio of banks is far too low
We have reported on the continuous threats to banks, and have identified that these are not Black, but Grey Swans. Black swans are large-scale unpredictable and irregular events of massive consequence for which we hardly can prepare ourselves. Grey Swans, on the other hand, are events which have a very high impact, but one for which organizations are able to prepare themselves. Banking is such a huge Grey Swan. Why is this?
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