When is best practice good enough?

Risk analysis

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Throughout much of the ninteenth century, banking regulation in most countries was fragmented and often ineffective. Gradually, a consensus emerged that the social damage from the failure of financial institutions and periodic monetary crises required stricter and more co-ordinated supervision. This view was reinforced during the great depression with the introduction of deposit insurance. At that point, the public sector, and ultimately the taxpaying public at large, had a clear financial stake

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