Bank Quote by Jeroen Dijsselbloem
“If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.”
About This Quote
Source Speech: Financial Stability Forum, 2015
He prices risk when he knows a bank may fail, reflecting a cost of potential loss.
In simple terms: He assigns a cost to bank failure risk.
Consider risk pricing in investments.
Themes
Mood
Type
When to use this quote
- investment decisions
- regulatory planning
- portfolio management
Key Concepts
Questions to Reflect On
- How do you quantify unknown future losses?
- What safeguards can reduce exposure?
Risk pricing may be uncertain due to unpredictable crises.