moral hazard
noun /ˌmɒrəl ˈhæzəd/
/ˌmɔːrəl ˈhæzərd/
[uncountable, singular] (economics)- lack of reason to try to avoid risk when protected from its consequences, for example by insurance
- Cheap easy credit has created moral hazard throughout the global economy.
- The insurance creates a moral hazard for banks to engage in risky investments and loan too much money to unsuitable borrowers.