Iceland and the Lessons from the Banking Crisis

“Perhaps the most important lesson: One should not rely too much on high equity ratios of banks. Because, to put it bluntly: Whoever can print money can also print equity. The value of this equity created in a crisis is questionable.”

– Norbert Häring, Frankfurt, “An instructive disaster – Iceland examined its banking crisis as thoroughly as no other country – and brought up questionable things”, Handelsblatt, January 15, 2018, No. 10