Norges Bank director pushes for better pricing of risk


Central banks must adopt tools for earlier intervention and credible resolution regimes that reduce moral hazard and prevent excessive risk taking if another crisis is to be avoided, a senior Norges Bank official has said.

"We need alternative ways for creditors and counterparties to ensue losses in a banking crisis then a messy Lehman-like bankruptcy and that without such alternatives we would end up with government bailouts again," Arild Lund, a director at the central bank, said at the Nation

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