Professional Documents
Culture Documents
Deregulation: of Bank Entry and Branching
Deregulation: of Bank Entry and Branching
Deregulation: of Bank Entry and Branching
Lax entrance
to Industry
1950s
1960s
Deregulation
of Bank Entry
& Branching
No change in
Policy
Mid
1960s
CBP became
very restrictive
1970s
1980s
Early
1980s
Deregulation
of Interest
Rates
1990s
Banking Structure
Significant increase in banking
offices & branches
New entries and consolidations
Effect of Regulated Industry:
No Competition
Measures of
Concentration
Issue of Market Power
Detect and prevention of
oligopolistic groups
Operational Efficiency
When? Interest spread is low.
Two factors:
Microeconomic level
Macroeconomic level