Why are banks allowed to remain fragile, and who truly benefits from this instability? In this episode of Marginally Speaking, Professor Vasudha Nukala (ISB) speaks with Professor Anat Admati of Stanford University to examine why weak bank capitalisation persists despite repeated crises. Drawing on his influential research and writing, Admati explains how regulatory failures, political incentives, and muted accountability allow risky behaviour to become profitable rather than punished. The conversation explores why large fines rarely change conduct, how systemic fragility is normalised, and what meaningful reform would actually require.
Jan 23 202629 mins