Why Do We Regulate Banks?
6 Pages Posted: 14 Jan 2006
Abstract
There is little reason, from an economic perspective, for banking regulation. Incentives exist, or can be created through private systems, to protect against the risks that are usually cited in defense of banking regulation. Moreover, the private systems would remove much of the cost and risk created by current government oversight. This suggests that the only reason we regulate banks is because we want to, not because we have to.
Keywords: Banking, banking regulation, private banking, private banking system, banks
JEL Classification: E42, E62, G21, G28
Suggested Citation: Suggested Citation
Wallison, Peter J., Why Do We Regulate Banks?. Regulation, Vol. 28, No. 4, pp.14-19, Winter 2005, Available at SSRN: https://ssrn.com/abstract=875361
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