Book review: better bankers, better banks: promoting good business through contractual commitment by Claire A. Hill and Richard W. Painter

In Better Bankers, Better Banks: Promoting Good Business through Contractual Commitment, Claire A. Hill and Richard W. Painter provide an account of the changes to banking that encouraged the risk-taking that became a factor in the global financial crisis, and propose a solution: ‘covenant banking’. The authors’ suggestion of binding bankers to contracts that encourage accountability to stakeholders and increase personal liability for losses is an essential contribution to debates over the regulation of the financial sector. However, the wider structural factors that enable excessive risk-taking behaviour remain somewhat overlooked, writes Mehmet Kerem Coban.