TITLE

DEPOSIT INSURANCE AND BANKING STABILITY

AUTHOR(S)
Kam Hon Chu
PUB. DATE
January 2011
SOURCE
CATO Journal;Winter2011, Vol. 31 Issue 1, p99
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses bank runs and deposit insurance policies, focusing on examples from the global financial crisis which began in 2008, and addressing issues such as financial stability and government bailouts. Some problems with deposit insurance are analyzed, such as moral hazard, and it is noted that the threat of possible bank runs tends to foster a more prudent approach to financial risk. The question of whether banking regulatory agencies have a history of successfully preventing or correcting market failures is also addressed.
ACCESSION #
59667837

 

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