Governments drawing on domestic banks to finance deficits (when bond-market access is lost) is reaching its limit and is dangerous because it depletes the banking system's capital, threatening financial stability.
causalpending
Speaker
David MalpasEvidence Quote
“what they have been doing and it's dangerous is drawing on their domestic Banks...when they lose access to bond markets uh then they turn to their Banks and say give me some money...so that's reaching its end”
Source
Fix the global debt crisis before it's too late, warns World Bank's David Malpass— GZERO MediaCreated: 8/12/2026, 6:44:21 PM
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