, Columnist
It’s Time to Let Bankers Face a Darwinian Fate
We’re past the point where regulators should be holding back the better lenders. It makes sense to let the fittest resume dividends.
Survival of the fittest.
Photographer: Yann Schreiber / AFP
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When the pandemic hit, regulators and policymakers around the world raced to cushion the blow to the economy and keep banks functioning. From guaranteeing loans to rolling out payment holidays to easing capital demands, the aim was to ensure borrowers would have some breathing space and that credit wouldn’t seize up. It worked.
Buoyed by their successes, regulators need to embrace yet bolder action: letting at least the fittest lenders resume investor payouts.