Last modified on 20 June 2013, at 01:42

market discipline

EnglishEdit

NounEdit

market discipline (uncountable)

  1. (banking, economics) The forces in a free market which tend to control and limit the riskiness of a financial institution's investment and lending activities, such as the concern of depositors for the safety of their deposits and the concern of bank investors for the safety and soundness of their institutions.