Journal Article

Regulation’s role in bank changes

Abstract: This is the first article in a series which explores the changing role of banks in the financial intermediation process. It accompanies a Liberty Street Blog series. Both discuss the complexity of the credit intermediation chain associated with securitization and note the growing participation of nonbank entities within it. These series also discuss implications for monitoring and rulemaking going forward. In the article, the author argues that government involvement has been a significant factor in financial innovation and describes a number of the regulatory, legal, and policy decisions that have influenced the development of the new financial intermediation landscape and shaped banks' roles within it.

Keywords: Interstate banking; Mortgage-backed securities; Gramm-Leach-Bliley Act; Regulation Q: Prohibition Against Payment of Interest on Demand Deposits; Branch banks; Bank capital; Banks and banking - Regulations; Bank liquidity; Repurchase agreements; Money market funds; Banking structure;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Economic Policy Review

Publication Date: 2012

Issue: Jul

Pages: 13-20