Liikanen report
So imagine you have a bunch of toys and you like to play with all of them. But sometimes, when you play with some toys too much, they might break or run out of batteries.
Now, imagine that banks are like grown-up toy collectors. They have lots of money (which is like another kind of toy) and they use this money to buy and play with other kinds of things that make them money, like loans and investments.
But just like with your toys, if banks play with some of these things too much, they could also break or run out of money. And if that happens, it could make a big mess for the grown-up world because banks are very important for things like buying houses and starting businesses.
So some very smart people made a report called the Liikanen Report, named after one special man who helped write it. This report basically said that banks need to be more careful and not play with some types of money-making things too much. It also said that banks need to have more money saved up, like a piggy bank, just in case some of their toys (or investments) break or lose money.
Overall, the Liikanen Report is like a big reminder for banks to be responsible and not play too rough so that everybody can keep having fun and using their toys (and money) safely.
Now, imagine that banks are like grown-up toy collectors. They have lots of money (which is like another kind of toy) and they use this money to buy and play with other kinds of things that make them money, like loans and investments.
But just like with your toys, if banks play with some of these things too much, they could also break or run out of money. And if that happens, it could make a big mess for the grown-up world because banks are very important for things like buying houses and starting businesses.
So some very smart people made a report called the Liikanen Report, named after one special man who helped write it. This report basically said that banks need to be more careful and not play with some types of money-making things too much. It also said that banks need to have more money saved up, like a piggy bank, just in case some of their toys (or investments) break or lose money.
Overall, the Liikanen Report is like a big reminder for banks to be responsible and not play too rough so that everybody can keep having fun and using their toys (and money) safely.