U.S. Bank Deregulation in Historical Perspective

This book shows how and why deregulation has transformed the size, structure and geographic range of US banks, the scope of banking services, and the nature of bank-customer relationships. Over recent decades the characteristics that had made American banks different – the fragmented geographical structure of the industry, which restricted the scale of banks and their ability to compete with one another, and strict limits on the kinds of products and services commercial banks could offer – have virtually been eliminated. Understanding the origins and persistence of the unique banking regulations that defined US banking for over a century lends an important perspective on the economic and political causes and consequences of the current process of deregulation. History helps to define the political constituencies for and against deregulation, the political process through which bank regulations are determined, and the way deregulation is likely to affect future bank performance and stability.