The deregulation of financial markets and banks in particularhas been a consistent force in the development of the financial
sector of advanced economics during the last quarter of the
20Th century.Deregulation of financial markets and banks has
been directed towards their competitive actions, but this
has been accompanied by increased regulation over the soundness
of their financial position.Consequently,there is a dichotomy as
far as the operation of banks are concerned;greater commercial
freedom (i.e more regulation)
Deregulation consist of two strands removal of impositions
of government bodies such as building societies.The process of
deregulation across the developed economics has come in three
phases but not always in the same sequences.The first phase
of deregulation began with lifting of quantitative control on bank
ass est and ceiling on interest rates on deposits.
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