Princeton University economist Hyun Song Shin says stringent banks regulation is important for two reasons, reports The Wall Street Journal.

Not only can banks help economies maintain stability, but they can also boost growth through lending.

The Wall Street Journal adds Shin recently spoke about this topic at a European Central bank forum in Portugal, where he offered up a metaphor to show how bank equity, lending and leverage all need to be balanced to keep institutions—and economies—afloat.

Read more about that metaphor here.

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