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 hazard, since they reduce banks’…
Associate Professor (tenure track) at the University of Vaasa, and Adjunct Professor at the Turku School of Economics. Based in Finland.