Mutualization

In finance, the mutualization of risk is the process of dividing up exposure to potential risk or financial losses among many or all shareholders in a financial structure.

See also deposit insurance, bank run and public goods problem.

References

  1. Oakland, William H. "Theory of public goods." In Handbook of public economics, vol. 2, pp. 485-535. Elsevier, 1987.
  2. Stiglitz, Joseph E. "The theory of local public goods." In The economics of public services, pp. 274-333. Palgrave Macmillan, London, 1977.
  3. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.
Edit this page