Jonathan Guthrie Author Rss https://faqinsurances.com/author/jonathan-guthrie/ Jonathan Guthrie Author Rss - Faqs of Insurances Mon, 29 May 2023 00:00:18 +0000 en-US hourly 1 https://faqinsurances.com https://faqinsurances.com/public/skin/logo.png Jonathan Guthrie Author Rss https://faqinsurances.com/author/jonathan-guthrie/ 144 144 <![CDATA[Higher levels of cover would increase implicit subsidies to reckless bankers ]]> https://faqinsurances.com/2023/05/29/higher-levels-of-cover-would-increase-implicit-subsidies-to-reckless-bankers/ Mon, 29 May 2023 00:00:18 +0000 https://faqinsurances.com/2023/05/29/higher-levels-of-cover-would-increase-implicit-subsidies-to-reckless-bankers/ One sales pitch of insurance salespeople has always been: “I don’t sell insurance, I sell peace of mind”. Regulators and central bankers are now spinning similar lines by emphasising the reassuring qualities of higher deposit insurance over its costs.

But localised banking turmoil does not justify mission creep by deposit insurance schemes. For commercial banks and their customers, the detriment would include further erosion of their agency within the financial system. Higher deposit insurance also would increase implicit subsidies to reckless bankers.

This story originally appeared on: Financial Times - Author:Jonathan Guthrie

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