The evidence from banking crises in other countries indicates that

Question

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The evidence from banking crises in other countries shows that a combination of deregulation and poor regulatory supervision increases moral hazard incentives for banks. This leads to risky behavior and ultimately banking crises. Deposit insurance and government safety nets for depositors do not inherently cause moral hazard, but may exacerbate the problem if paired with inadequate regulation and supervision. Regulatory forbearance, or delaying or withholding enforcement of regulations, can also contribute to banking crises.

The Evidence from Banking Crises in Other Countries Indicates That