The experience of recent bank failures in several major countries — Johnson Matthey in the UK, Continental Illinois in the USA and Canadian Commercial Bank — has pointed up a number of intractable problems facing central banks and bank regulatory authorities. First, if really large banks are always to be prevented from failing, then either there will be inequitable treatment between large and small, with a resulting tendency towards oligopoly, or all banks must enjoy similar protection, which will exacerbate moral hazard problems. This issue is discussed in Section 6.2.
Weitere Kapitel dieses Buchs durch Wischen aufrufen
- Bank Insolvency and Deposit Insurance: A Proposal
C. A. E. Goodhart
- Palgrave Macmillan UK
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