Focus on banks’ incentives must continue post-crisis: Bank’s Bean
The financial crisis has highlighted the need to understand banks' incentives, and central banks must continue watching and analysing these in good times, Charles Bean, a deputy governor of the Bank of England, said on Saturday.
Presenting a paper co-authored with Matthias Paustian, Adrian Penalver and Tim Taylor at the Kansas Federal Reserve's annual symposium in Jackson Hole, Wyoming, Bean noted that pre-crisis literature focused on financial frictions caused by the behaviour of borrowers. The
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