Introduction The struggle against moral hazard in banking is constant and real. There’s no turn-key solution for eliminating it, but it must be kept in mind at all times by policy makers. Consider the following citation from Wikipedia: “The role of the lender of last resort, and the existence of deposit insurance, both create moral […]
Joni SalminenAssociate Professor (tenure track) at the University of Vaasa, and Adjunct Professor at the Turku School of Economics.