This has raised fears of a new form of technological unemployment, to which the medium-skilled population is also vulnerable, and has helped to spread a sense of insecurity, raising the demand for protection.
And that brings me to the limits of the Small Banking Box. Importantly, there can be no concessions regarding risk-based capital ratios, the leverage ratio or the short-term liquidity ratio. And the list goes on. Small banks’ business models are neither per se simple nor automatically low-risk – and that is particularly true when looking at them as a whole.