Tagged: banking

Kiwibank: a retrograde step - The Dismal Science

Michael Reddell Apr 07, 2016

I wrote about Kiwibank last week, noting that there had never been a good economic reason for the Crown to have established it, and that there was not a good economic reason for the Crown to continue to own it.   Doing so undermines (modestly) the efficiency of the financial system, and poses unnecessary risks for taxpayers. I take it … Read More

Open Banking Resolution and Deposit Insurance - The Dismal Science

Eric Crampton Apr 12, 2013

New Zealand's Open Banking Resolution system in case of bank failure makes bank failure less likely, and so makes depositor bailouts less likely, but doesn't eliminate the risk that the government might bail out depositors. Matt Nolan has made this point more than a few times and has urged that we reinstate deposit insurance and require banks to … Read More