Regulations and deregulations in the banking industry. When should the law-makers back off?
Regulations and deregulations in the banking industry. When should the law-makers back off?
Author(s): Nikolett CSÁSZÁR, Mircea I. Gherghina, Ioan Alexandru GherasimSubject(s): Law, Constitution, Jurisprudence
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: Banking industry; Deregulation; Legal frameworks; Macroeconomics; Institutional Change
Summary/Abstract: This paper examines the banking regulatory frameworks that were enforced from the 1980 to date and see if there is a cyclical tendency in the patterns of regulations and deregulations. To analyse this, we look at 10 acts or key events from the US banking industry and compare them against variant macroeconomic indicators. The result shows that lawmakers imposed deregulations upon the banking industry in moments of economic growth and regulatory measures after a period of economic downturn. This has some serious implications for policy making. In the end, we attempt to conclude whether lawmakers should back off and have a hands off approach to banking industry or if they should permanently regulate.
Journal: Tribuna Juridică
- Issue Year: 4/2014
- Issue No: 07
- Page Range: 129-141
- Page Count: 13