Briefing Paper No. 45 March 12, 1999

Briefing Paper

Bank Regulation
Will Regulators Catch Up with the Market?

by Randall S. Kroszner

Randall S. Kroszner is an associate professor of economics in the Graduate School of Business at the University of Chicago.


Executive Summary

Legislation on financial services modernization has taken on special urgency since the banking industry is transforming itself through mergers stretching across financial services and across countries. Phil Gramm (R-Tex.), the new chairman of the Senate Banking Committee, has made bank regulatory reform his "number-one priority." A review of historical and contemporary evidence shows how market forces can address concerns about consumer protection and the soundness of the financial system. The financial services modernization legislation thus should

Full Text of Briefing Paper No. 45 (PDF, 26 pgs, 80 Kb)

1999 The Cato Institute
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