Banks Quote by Daniel Kahneman
“Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.”
About This Quote
Source Speech: Interview on financial regulation, 2015
Executives prioritize self‑interest, so banks may act irrationally despite formal rules.
In simple terms: Bank leaders protect themselves, not always rational.
Key Takeaway
Watch for self‑serving bias in finance.
Themes
finance
human behavior
risk
governance
Mood
cautious
analytical
Type
observational
critical
When to use this quote
- investment decisions
- policy making
- corporate oversight
- risk assessment
Key Concepts
principal‑agent problem
behavioral economics
moral hazard
Questions to Reflect On
- How can incentives be aligned with rational outcomes?
- What safeguards reduce irrational banking behavior?
A Different Perspective
Self‑interest can be mitigated by strong regulation and culture.
