India's Banks Need the Tools to Get Tough
The cost of defaulting -- often willfully -- simply isn't high enough, thus creating a systemic moral hazard. There are two ways to attack this problem. First, India needs a modern bankruptcy law that can break the cycle of continuous restructuring and ...
Read more on Bloomberg View

Big banks greatest threat: non-banks
Yet even better-aligned banks, which hold most assets to maturity (rather than selling them to investors), are not immune to moral hazards. During the week the Australian Securities and Investment Commission reported that after reviewing lending ...
Read more on The Australian Financial Review