Canada manages to have "wonderfully boring" banks, says David Singer who studies crises and heads Massachusetts Institute of Technology’s department of political science...
“Canada manages to have 'wonderfully boring' banks, says David Singer, who studies crises and heads Massachusetts Institute of Technology’s department of political science. 'The recipe for stability is to have well-capitalized, risk-averse banks,' he says. A well-capitalized bank is something like a homeowner with a lot of equity: It has a financial cushion to absorb losses on the value of its assets. 'But banks won’t naturally gravitate toward such behavior. They need thorough and steady regulation that doesn’t ease up when the economy is humming.'”