Alas, (effectively) government deposit insurance encourages a lot of risk taking by banks. Which then begets more regulation.
People who essentially want government guarantees for their money should just buy government bonds.
Alas, (effectively) government deposit insurance encourages a lot of risk taking by banks. Which then begets more regulation.
People who essentially want government guarantees for their money should just buy government bonds.
> encourages a lot of risk taking by banks. Which then begets more regulation.
Not with simple account deposits, no
Basel rules are still a thing
Hence my "Which then begets more regulation."
Customers stop monitoring their bank, when deposits are insured.