So our banks haven’t had to deal with substantial credit losses that have impinged so heavily on the profits of many overseas banks following the global financial crisis. This profitability has also meant that the banks have found it relatively easy to build capital in response to international moves to improve the resilience of the banking system worldwide.
3/9  BIS central bankers' speeches  So while we have a concentrated banking system, the major banks appear relatively efficient and strong. What, then, can we say about the implications of this structure for financial stability? Does having a relatively concentrated banking system promote financial stability? Or does it make the system more susceptible to shocks?