Chapter
Risks of Lack of Oversight in Banking
34:40 - 37:35 (02:54)
The lack of oversight in banking can lead to moral hazard for CEOs and boards, as well as risks for the individual bank, which should be monitored by regulators for systemic risk.
Clips
The banking industry may face moral hazard due to their reliance on long-term investments and the potential for losing the value of their equity.
34:40 - 37:35 (02:54)
Banking
Summary
The banking industry may face moral hazard due to their reliance on long-term investments and the potential for losing the value of their equity. Regulators should be monitoring these risks to individual banks, rather than solely focusing on systemic risks.