Faithin Omaha eBook Collection

Download or read book Financial Services and the World Trade Organization written by Aaditya Mattoo and published by World Bank Publications. This book was released on 1999 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is difficult to design and implement an effective safety net for banks, because overgenerous protection of banks may introduce a risk-enhancing moral hazard and destabilize the very system it is meant to protect. The safety net that policymakers design must provide the right mix of market and regulatyory discipline, enough to protect depositors without unduly undermining market discipline on banks.