Yellen on Banking Regulations, Systemic Risk

The video discusses improvements in financial regulation since the financial crisis, focusing on systemic risk and financial stability. It highlights the Fed's macroprudential approach to supervising large firms, increased capital and liquidity requirements, and strategies for resolving failing systemic firms without taxpayer costs. Collaboration with foreign regulators is also emphasized.

What is the primary focus of the improved financial regulation discussed in the first section?

• Reducing interest rates

• Systemic risk and financial stability

• Increasing bank profits

• Enhancing customer service

How does the new supervisory approach differ from the previous one?

• It reduces regulatory oversight

• It focuses on individual institutions only

• It considers interconnections among firms

• It ignores systemic firms

What is a macroprudential approach?

• A method to increase bank profits

• An approach focusing on individual firm safety

• A way to reduce customer complaints

• A strategy to consider the financial system as a whole

What has been significantly increased in the banking system to enhance its safety?

• Interest rates

• Capital and liquidity requirements

• Number of branches

• Customer service representatives

What problem does the 'too big to fail' concept address?

• Low bank profits

• Lack of customer service

• Firms that cannot be dismantled without taxpayer costs

• High interest rates