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Because a bank's exact need for liquidity is difficult to know in real time, depositors have incomplete information about its ability to survive a run. The incomplete information means that a bank is not automatically incentivized to hold enough liquid assets to survive runs. Regulations similar to those implemented recently can change the bank’s incentives so that runs are less likely.
At this Becker Brown Bag, Douglas Diamond of Chicago Booth discussed how these regulations can be improved.
Etape 4 / 9 mai 2017 / Giro 2017 / Cefalu - Etna / Jérémy Roy
Retrouvez plus de photos sur le compte Instagram de l'Equipe Cycliste FDJ: www.instagram.com/equipefdj/
Etape 4 / 9 mai 2017 / Giro 2017 / Cefalu - Etna / Tobias Ludvigsson
Retrouvez plus de photos sur le compte Instagram de l'Equipe Cycliste FDJ: www.instagram.com/equipefdj/