Rethinking the Regulatory Response to Risk-Taking in Banking
In considering reforms to promote the health and efficiency of our financial services industry, the critical focus should be on revamping the current system of deposit-insurance pricing and coverage. These reforms should emphasize greater reliance on market forces and less reliance on the regulatory apparatus, while retaining the advantages of a multiple-agency framework.
The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit clevelandfed.org for updates.
This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International
- Share