What Is Bank Deregulation?

Deregulation, also known as deregulation, refers to deregulation or cancellation of some controls, such as changing the controls on corporate entry, pricing, and investment from licensing to reporting.

Deregulation is mainly to abolish some economic regulations, while deregulation of social regulations requires caution. The main feature of deregulation is the introduction of regulated industries

In the "oil crisis" that occurred in the 1970s, the economies of various countries were in a state of stagnation or recession. Governments

1. Reduce barriers to entry to the industry

Generally, before deregulation, new competition rules should be designed so that an effective competitive market structure can be formed after deregulation. Deregulation may also have to pay a certain social price, causing some social losses.

The problems with regulation itself are also reasons for deregulation. There are usually inefficiencies within regulated enterprises that limit the pace of technological innovation; rent-seeking behavior may occur; the cost of government regulation is increasing, and due to the complexity and delay of regulatory procedures in regulated industries, Progress in improving service quality and rate structures and reducing rate levels has been slow.