How pizza can explain proposed bank capital regulation
Jan 16, 2024

How pizza can explain proposed bank capital regulation

It can be useful to think of the money a bank uses to fund its business as a pizza. We'll dish up a helpful analogy.

Segments From this episode

Mexican cuisine in the U.S. expands its reach and variety

Jan 16, 2024
Mexican food, increasingly popular with young Americans, is branching out beyond tacos and Tex-Mex. One in 10 eateries serves it.
Pew Research finds that 85% of U.S. counties have at least one Mexican restaurant.
Ethan Miller/Getty Images for Vegas Uncork'd by Bon Appetit

How pizza can explain a proposed rule about bank capital

Jan 16, 2024
Regulators want to make sure banks have enough money on hand to weather wobbles in the economy. Too much risk can ruin a good meal.
If you think of the funding a bank uses to do business as a pizza, debt would be slices with unusual toppings (which come with more risk) and equity slices would be plain cheese. The proposed rule would require more of those plain slices. But the banking industry warns that would cost more.
Robert Nickelsberg/Getty Images

The team

Leanna Byrne Host, BBC
Kelly Silvera Executive Producer
Meredith Garretson Morbey Senior Producer
Erika Soderstrom Producer
Alex Schroeder Producer
Ariana Rosas Producer
Dylan Miettinen Digital Producer
Jesson Duller Media Producer
Nic Perez Director/Producer
James Graham Producer, BBC
Jo Critcher Producer, BBC
Naomi Rainey Producer, BBC
Lis Mahy Producer, BBC