Barcelona Reports
Barcelona 6: Banking Turmoil and Regulatory Reform
The sixth report in The Future of Banking series, part of the Banking Initiative from the IESE Business School, examines the 2023 banking turmoil that caused the failures of Silicon Valley Bank, other regional banks in the United States and Credit Suisse, and its implications for financial regulation. This banking turmoil was the first major challenge of the Basel III framework. The report centres around three major themes: the changes in digital banking and monetary policy that led to the turmoil, and the reforms needed to deposit insurance and the lender of last resort; the shortcomings of regulation, accounting, and supervision that caused banks that were deemed solvent to fail; and the management of bank failures and potential reforms to resolution procedures.
