The Markets Take Over
Article Abstract:
Reasons why the financial market, rather than regulation, is becoming the greatest influence on international banking are cited. The abolition of regulation Q, which set maximum interest rates on savings deposits in the United States in 1983, is described. Factors which may cause the Japanese to abandon interest-rate ceilings on bank deposits are examined. Movement towards deregulation is taking place in the Scandinavian countries. Institutional competitors for deposits in West Germany and Great Britain are mentioned.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1984
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Lessons on Liabilities
Article Abstract:
Deregulation has caused a complete change in the relationship between a bank's short-term liabilities and long-term assets. The predicament of Bank of America, following deregulation, illustrates this change. Because of the great increase in the cost of funding and the loss of a substantial number of savings accounts, Bank of America has been especially hard hit by deregulation.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1984
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