In the report, the authors examined:
Financial System Strength and Resilience. The report stated that banks were able to “absorb and manage, rather than amplify” the economic shock because of the past decade’s regulatory reform, which ensured strong capital and liquidity positions and reduced counterparty credit risk through central clearing and collateralization of exposures.
Access To Credit. The report cited the Bank for International Settlements, which reported that U.S. bank credit expanded by over $400 billion in a single quarter, and that bank lending in the EU, UK and Japan satisfied credit demand at three to five times the normal rate for loans. These same jurisdictions also experienced a “significant inflow” of…