Fintech Takes

Bank Nerd Corner: Debanking and Reputation Risk: What’s Really on the Line?

9 snips
Dec 11, 2024
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Reputation Risk Emergence

  • Bank regulators traditionally focused on credit and market risks.
  • Reputation risk emerged in the 90s alongside operational risk, driven by concerns like Y2K.
ANECDOTE

Banks and Reputation

  • Banks, like supermarkets and universities, care about reputation.
  • However, banks face unique risks due to potential runs and panics if reputation is damaged.
INSIGHT

Difficulty of Assessing Reputation Risk

  • Bank examiners aren't well-placed to assess individual bank reputation risk.
  • Depositors are "sticky," often staying even after negative personal experiences.
Get the Snipd Podcast app to discover more snips from this episode
Get the app