Economics & Finance / Finance & Investment / Banking & Credit

Why Banks Are Still Sick 10 Years After the 2008 Crisis?

Kyriakos T. Chousakos, Gary B. Gorton

The 2008 financial crisis ended over a decade ago, but banks in the US and Europe are still not healthy. This video dives into a groundbreaking 2017 NBER study by Kyriakos T. Chousakos and Gary B. Gorton, which reveals a shocking truth: bank health, measured by Tobin's Q, collapsed after the crisis and never fully recovered. We explore why traditional economic factors like low growth or interest rates can't explain this, and point to a controversial culprit: post-crisis regulations that may have crushed bank profitability and charter value. Discover how banks have become homogeneous, cash-heavy, and less willing to lend, while shadow banks take over. If you want to understand the hidden scars of the financial crisis and what they mean for your money, this is a must-watch.