Is Government Regulation of Banks Necessary?
Banks have been involved with and regulated by governments for hundreds of years. This paper delineates 9 reasons that could justify continued regulation, particularly in the US. This article concludes that deposit insurance, which allows banks to hold insufficient capital, is the only public-policy...
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Veröffentlicht in: | Journal of financial services research 2000-12, Vol.18 (2), p.185-202 |
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Format: | Artikel |
Sprache: | eng |
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Online-Zugang: | Volltext |
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Zusammenfassung: | Banks have been involved with and regulated by governments for hundreds of years. This paper delineates 9 reasons that could justify continued regulation, particularly in the US. This article concludes that deposit insurance, which allows banks to hold insufficient capital, is the only public-policy-justifiable rationale for regulation. This concern can be managed with capital requirements; otherwise, banks should only be regulated as are other corporations. |
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ISSN: | 0920-8550 1573-0735 |
DOI: | 10.1023/A:1026590704616 |