I strongly recommend reading about John Cochrane's notion of equity-financed banking (PDF): http://www.hoover.org/sites/default/files/research/docs/george_shult

I strongly recommend reading about John Cochrane's notion of equity-financed banking (PDF): http://www.hoover.org/sites/default/files/research/docs/george_shultz_blueprint_for_america_ch7.pdf http://www.hoover.org/sites/default/files/research/docs/geor... It functionally eliminates bank runs and the need for most regulation. People will be able to bank like normal, but contagion and bank failures go away. Not all banks need to be forced to go this route. But if you offered banks the option to opt-out of Dodd-Frank if they were 95% financed by equity and retained earnings, I'm pretty sure most would. Longer essay here: http://johnhcochrane.blogspot.com/2016/05/equity-financed-banking.html http://johnhcochrane.blogspot.com/2016/05/equity-financed-ba...