Moral hazard

According to reports, former Vice President Zhu Min of the People’s Bank of China recently stated that the Silicon Valley Bank incident is a very typical bank asset mismatch, maturity mismatch, structural mismatch, and improper management. When the external environment changes, especially when the interest rate environment changes, it is not able to adjust in a timely manner. Zhu Min believes that the action speed of the Federal Reserve and the Ministry of Finance is relatively slow, and the Silicon Valley banking incident is a typical bank management error that…

According to reports, Zhao Changpeng, CEO of Coin Security, tweeted that once the regulators implemented a rescue to the bank, it would fall into a dilemma. If there is no relief, it does not conform to the claim of “protecting consumers”. If the bank bails out, it will lose the power to manage risks, thus encouraging banks to take more and more risks, which will lead to more bailouts. He said that this was a thorny issue, and suggested that regulators should only help consumers and compensate them. Then shut…