Comic: NZ deposit insurance for finance companies

Mike Moreu is on the money again! The link is here.
Why is there no haircut for the insurance? Why are the fees not linked in inherent risk?
I agree that in some countries governments need to "recapitalise" banks by buying parts of them. I agree that a deposit insurance scheme can avoid bank runs (and can do so in a way the private sector may struggle wit…
Keep reading with a 7-day free trial
Subscribe to Matt's musings to keep reading this post and get 7 days of free access to the full post archives.