September 15, 2015
Sir, Patrick Jenkins writes: “A structurally low-profit banking system was the price Germany decided to pay for its industrial revival”, “European banks set their sights on German expansion”, September 15.
Compare that to the current banks, living in an environment of credit risk weighted capital requirements for banks. Banks are now allowed to make massive profits, derived from massive leverages of their equity and the support received from society, as long as they stay to something that is perceived or can be construed as being absolutely safe.
No! Not a single second did the overanxious and overprotective bank nannies in the Basel Committee for Banking Supervision waste thinking about the purpose of banks, like that of industrial revival.
Sir, I ask you again: Whose dreams should regulators most try to help come true, the bankers’ or those of entrepreneurs or unemployed?