Fantastic as ever Marc. What fascinates me is how all the watchdogs, bs detectors, risk management strategies that should be operating at a regulatory, institutional and private risk management level repeatedly go on the blink. We don't seem to learn. What else is out there that is happening right now, and what are the red flags we are all missing ?
Since you mentioned PMC Bank and that "rapid growth of financial institutions isn't always great", I touched upon this when covering shadow banking in India.
Marc. You note that deposit insurance is good for banks but, if I read you correctly, suggest that it also means that banks do not need to care as much about the quality of their assets.
I would be interested to read a longer analysis from you on this question including the way that deposit preference interacts with deposit insurance. I had a go at this question here for the Australian banking system
Fantastic as ever Marc. What fascinates me is how all the watchdogs, bs detectors, risk management strategies that should be operating at a regulatory, institutional and private risk management level repeatedly go on the blink. We don't seem to learn. What else is out there that is happening right now, and what are the red flags we are all missing ?
Good post.
Since you mentioned PMC Bank and that "rapid growth of financial institutions isn't always great", I touched upon this when covering shadow banking in India.
https://do-marlay-ka-moonh.medium.com/amazing-rise-and-spectacular-fall-of-shadow-banking-in-india-b74e15f87ea
Marc. You note that deposit insurance is good for banks but, if I read you correctly, suggest that it also means that banks do not need to care as much about the quality of their assets.
I would be interested to read a longer analysis from you on this question including the way that deposit preference interacts with deposit insurance. I had a go at this question here for the Australian banking system
https://from-the-outside.com/primers/bank-deposit-protection/