If banks have deposit insurance they shouldn’t be allowed to make loans
This would be a separation of lending and deposit insurance. No one should be allowed to make loans if they have deposit insurance.
If a bank has deposit insurance it should not be permitted to make loans.
John Locke, Second Treatise of Government: "No body could think himself injured by the drinking of another man, though he took a good draught, who had a whole river of the same water left him to quench his thirst."
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