On The Role of Regulatory Banking Capital. Harald Benink Jón Daníelsson Ásgeir Jónsson April 6, 2006. Traditional Function of Capital. Buffer, incentives, protection of depositors Explicit and implicit creditor insurance not correctly priced
April 6, 2006
on the idea of the government prescribing regulations for bridge design
“In other words, embarrass and shackle the progress of improvements of tomorrow by recording and registering as law the prejudices and errors of today”.
… then the probability is close to zero
This is endogenous risk random ending up walking exactly in step?Some endogenous risk events