- All financial crises are runs, no more and no less.
- Equity-financed banking prevents bank runs and therefore makes the system immune to financial crises.
- Equity-financed banks are financed with equity and back up all deposits with short-term Treasury bills or other risk-free liquid assets like interest paying reserves.
- Depositors or creditors would always be able to get their money back, eliminating the threat of bank runs.
- By removing debt financing and the risk of bank runs, equity-financed banks would require far less regulation.
- Run-free financial systems would be innovative, competitive, and better for the economy.