market discipline
nounDefinitions
The forces in a free market which tend to control and limit the riskiness of a financial…
The forces in a free market which tend to control and limit the riskiness of a financial institution's investment and lending activities, such as the concern of depositors for the safety of their deposits and the concern of bank investors for the safety and soundness of their institutions.
- Handing financial regulation back to ‘market discipline’ will nullify the progress that has been made to create a system of international regulation.
- A “bail-in” process for bank resolution is a potentially powerful “third option” that confronts this problem head-on. […] If done correctly it should strengthen market discipline on banks and reduce the potential for systemic risk.
- The FSA believed in ‘market discipline’ and failed to get its message across. The PRA will be different, its boss promises[.]
The neighborhood
Vish — recursive loop
No curated loop yet for market discipline. Loops are being traced one word at a time while the ingestion pipeline matures.
sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA