Banking as Insurance

  • Mervyn Lewis


Almost every aspect of economic life is subject to uncertainty. The uncertainty comes about because people lack information about future ‘states’ with respect to resources, needs, preferences and technology. In order to cope with this uncertainty, a series of institutions for sharing and shifting risks has evolved. Markets for insurance services come readily to mind But the financial system as a whole performs a risk-sharing function.


Mutual Fund Balance Sheet Insurance Policy Deposit Insurance Liquidity Risk 
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© Edward P. M. Gardener 1990

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  • Mervyn Lewis

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