Bruegel Event Recordings

The financial crisis has starkly underlined the dangers of complex financial assets. Such assets are not only hard to value and price, but may also lead to fire sales and solvency risks once liquidity dries up. Based on an extensive study by the Bank of Italy this event will discuss the lack of transparency and problems in valuing correctly significant parts of bank assets in the euro area. This will allow a review of whether the post-crisis regulation has brought about bank business models that generate more transparent assets, and a safer type of banking.