Chapter
Pros and Cons of Keeping Small Banks Afloat
55:12 - 58:33 (03:21)
Understanding the pros of protecting deposits at small banks while also recognizing how it could lead to independent banks losing their customers to big banks.
Clips
The modern regulatory view on banks is that when opening an account, a depositor should not have to evaluate the bank’s balance sheet, but instead trust that their money is safe.
55:12 - 58:33 (03:21)
Banks
Summary
The modern regulatory view on banks is that when opening an account, a depositor should not have to evaluate the bank’s balance sheet, but instead trust that their money is safe. The absence of deposit protection in small banks would lead to an overflow of money towards the top four banks.