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by megaman821 1042 days ago
Windfall taxes and bailouts aren't the policies that create a healthy banking sector. Instead they should worry about crafting better regulations and having competition for where people's savings go.
3 comments

What would you say is an exemplar of a healthy banking sector?
A healthy sector would have banks with balance sheets large and diverse enough to smooth over small economic disruptions like a bad bank investments or increased customer withdraws, and banks would offer customer savings rates much closer to overnight lending rates.
Ideally you make things more fireproof. But that's not an argument for not putting out things that are in flames at the moment.
This is a one-off tax if I read that correctly...