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Regulation and the Evolution of the Financial Services Industry

  • Arnoud W. A. Boot
  • Silva Dezelan
  • Todd T. Milbourn
Chapter

Abstract

The future of regulation of the financial services industry is certainly an im­portant topic in the current policy debate. To date, the concern about the safety and soundness of the financial system has led to intrusive regulatory interference. However, developments in information technology, the prolif­eration of financial markets, the blurring distinction between banking and non-banking financial institutions and the continuous barrage of new product innovations have put banking in a state of perpetual flux. This more com­petitive and dynamic environment may not be compatible with traditional regulatory structures, including deposit insurance, limits on permissible ac­tivities and controls such as intrusive capital and liquidity reserve require­ments. The key question is how to adapt the regulatory framework to the increasingly competitive environment of banking.

Keywords

Financial Institution Mutual Fund Deposit Insurance Regulatory Design Capital Adequacy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Arnoud W. A. Boot
    • 1
  • Silva Dezelan
    • 1
  • Todd T. Milbourn
    • 2
  1. 1.University of AmsterdamThe Netherlands
  2. 2.University of ChicagoUSA

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