The Times mentions today a report by the Institute of Economic Affairs dismissing claims that banks are strong enough to survive a more severe financial crisis than the last one.
Kevin Dowd and Dean Buckner, the authors, say that acute pressure on banking stock prices “contradicts” the central bank’s conclusions that they are adequately capitalised. “The Bank of England’s claims that UK banks are so strongly capitalised after the global financial crisis they could go through an even worse event and still emerge in good shape do not hold water.”
Oh dear.
The report is here.