word
moral hazard in banking
MOR-ul HAZ-erd in BANK-ing
ˈmɒrəl ˈhæzərd ɪn ˈbæŋkɪŋListen
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Syllable breakdown
moralhazardinbanking
Dictionary meaning
the tendency for financial institutions to take on excessive risk when they believe that losses will ultimately be borne by others — typically taxpayers or depositors — rather than by the institutions and their shareholders; arises from implicit or explicit government guarantees, deposit insurance, and the too-big-to-fail doctrine; a central tension in financial regulation between providing stability guarantees and preserving market discipline
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