Comment by eru
2 hours ago
Alas, (effectively) government deposit insurance encourages a lot of risk taking by banks. Which then begets more regulation.
People who essentially want government guarantees for their money should just buy government bonds.
> encourages a lot of risk taking by banks. Which then begets more regulation.
Not with simple account deposits, no
Basel rules are still a thing
Hence my "Which then begets more regulation."
Customers stop monitoring their bank, when deposits are insured.