What were the main effects of the 2008 financial crisis on the banking sector?

What were the main effects of the 2008 financial crisis on the banking sector?

The 2008 financial crisis led to significant changes in the banking sector, including increased regulation, bank failures, and a loss of public trust.

How did the crisis affect bank lending practices?

After the crisis, banks became more cautious in their lending, tightening credit standards and focusing on risk management.

What regulations were introduced after the crisis?

Key regulations included the Dodd-Frank Act, which aimed to increase transparency and reduce risks in the financial system.

Did the crisis lead to any major bank failures?

Yes, several major banks failed or were bailed out, including Lehman Brothers, which was a pivotal moment in the crisis.

How has the banking sector changed since the crisis?

The banking sector has become more resilient, with improved capital requirements and a focus on consumer protection.