Depositor discipline and the banking panic of 2023.

The author discusses the significant role of short-term creditors in moderating bankers' appetite for taking risks as of 2023. Topics covered include such creditors' identification of risky bank behavior and charging of higher interest rates on those with high risk profiles, the Federal Reserve's implementation of monetary policy. Also noted are uninsured depositors' failure to be a continuous source of market discipline on banks, in spite of financial vulnerabilities in bank reports.