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Why do Banks Fail? Economics Explained Interview with Professor Colliard

Economics Explained

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The Pros and Cons of Monitoring the Banks

The decision was made in this particular case that all deposits would be covered anyway. There are reports of large banks having tens of millions or hundreds of millions of dollars, particularly in SBB. I think one issue is that we have reregulated the banking sector a lot since the global financial crisis where there were much tougher regulations than they were before 2008. So you want at the same time to have other people, you know, with you on the risks and so you want to have a more decentralized system as well.

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