Lubberink and Nagel: "Citizens should be concerned about inflation and taxes, not about banks."

In this episode, Paul Buitink talks to Martien Lubberink, Professor of Accounting and Capital, and former ING Chief Risk Officer (CRO) Wilfred Nagel. Klaas Knot of the Financial Stability Board (FSB) warns of shocks in the financial system, particularly as a result of problems in real estate.

Paul asks Wilfred if he shares those concerns, which is not the case. Paul also asks whether European banks face similar risks as the banks that collapsed in March in America. He doesn't think so. The American banks had to deal with less strict regulations, which meant that they chose to hedge risks less well. According to Martien, these stricter regulations have also ensured that banks in Europe are in a better position than in the 2007 crisis. Paul wonders whether the current strict regulations for banks are necessary. And whether this does not undesirably lead to only large banks that are "too big to fail" remaining. And this creates an oligopoly.

Wilfred says that in his opinion there is enough choice for consumers and that it is still possible for banks, for example from other countries, to enter the market. Furthermore, he says that the risk that banks run, that customers withdraw their money from the bank, cannot be hedged. As a result, the government will always play a role. Paul suggests that the system can be set up differently and that the money-creating power is taken away from banks. Wilfred and Martien indicate that this is not necessary, but that they are fine with it if it is tried "bring it on" according to both. Wilfred concludes by saying that citizens should be concerned about inflation and taxation, rather than the safety of banks.