Do Banks Have Enough Capital? | Dr. Martien Lubberink
The more capital a bank holds, the more losses it can take before going bust. Dr. Martien Lubberink, professor at Victoria University of Wellington, joins Forward Guidance to define regulatory bank capital and put it in context of the conspicuous bank meltdowns in March. Lubberink opines on the issues at Credit Suisse & Silicon Valley Bank through the lens of bank capital, and he shares insights on the health and nature of the banking system of New Zealand, where he currently resides. Filmed on April 6, 2023.\n--\nFollow Martin Lubberink on Twitter\xa0https://twitter.com/cetier1\nRead Martin Lubberink\u2019s blog at\xa0https://capitalissues.co/\nFollow Jack Farley on Twitter\xa0https://twitter.com/JackFarley96\nFollow Forward Guidance on Twitter\xa0https://twitter.com/ForwardGuidance\nFollow Blockworks on Twitter\xa0https://twitter.com/Blockworks_\n--\nPieces discussed in the interview:\n\u201cThe Value of Kiwibank\u201d\nFresh RBNZ Dashboard data shows New Zealand\u2019s largest banks on track to meet increasing capital ratio requirements\u201d\nApply to host the \u201cLightspeed\u201d podcast on Blockworks\n____\nUse code GUIDANCE10 to get 10% off Permissionless 2023 in Austin:\nhttps://blockworks.co/event/permissionless-2023\nResearch, news, data, governance and models \u2013 now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research\xa0https://www.blockworksresearch.com/\n____\nGet top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:\nhttps://rb.gy/5weeyw\nMarket commentary, charts, degen trade ideas, governance updates, token performance, can\u2019t-miss-tweets and more. Subscribe to the Blockworks Research \u201cDaily Debrief\u201d Newsletter:\xa0https://rb.gy/feusos\n____\nDisclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.\n\nTimestamps:\n(00:00) Intro\n(01:39) Lubberink's Background In Bank Capital During The Great Financial Crisis (GFC)\n(08:04) What Is Bank Capital?\n(13:37) Silicon Valley Bank Was A Masterclass In "How To Not Run A Bank"\n(18:16) Banks' Hedging Of Interest Rate Risk\n(25:55) Permissionless\n(26:59) Important Regulatory Bank Capital Ratios\n(37:26) Credit Suisse & Additional Tier 1 Bonds\n(46:14) Operational Risks\n(48:11) "New Zealand Banks Are Among The Most Resilient Banks In The World\u201d\n(51:32) Interest Rate Hedging Again (Jack Is Obsessed)\n(55:10) Blockworks Research\n(56:11) Kiwi Bank\n(01:01:33) Monetary Policy Of Reserve Bank of New Zealand (NZ's Central Bank)\n(01:04:08) Real Estate Boom in New Zealand\n(01:06:59) Relaxation Of U.S. Banking Regulation