Title: Market discipline and financial safety net design
First published: 1999
Description: It is difficult to design and implement an effective safety net for banks, because overgenerous protection of banks may introduce a risk-enhancing moral hazard and destabilize the very system it is meant to protect.  The safety net that policymakers design must provide the right mix of market and regulatory discipline, enough to protect depositors without unduly undermining market discipline on banks.
Subjects: Deposit insurance, Banks and banking, Risk
LC classification: HG3881.5.W57 P63 no. 2183