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Regulations and deregulations in the banking industry. When should the law-makers back off?

Author

Listed:
  • Mircea I. Gherghina

    (student at Bucharest University of Economic Studies, Faculty of International Business and Economics)

  • Nikolett Császár

    (student at Bucharest University of Economic Studies, Faculty of International Business and Economics)

  • Ioan Alexandru Gherasim

    (student at Bucharest University of Economic Studies, Faculty of International Business and Economics)

Abstract

This paper examines the banking regulatory frameworks that were enforced from the 1980 to date and see if there is a cyclical tendency in the patterns of regulations and deregulations. To analyse this, we look at 10 acts or key events from the US banking industry and compare them against variant macroeconomic indicators. The result shows that lawmakers imposed deregulations upon the banking industry in moments of economic growth and regulatory measures after a period of economic downturn. This has some serious implications for policy making. In the end, we attempt to conclude whether lawmakers should back off and have a hands off approach to banking industry or if they should permanently regulate.

Suggested Citation

  • Mircea I. Gherghina & Nikolett Császár & Ioan Alexandru Gherasim, 2014. "Regulations and deregulations in the banking industry. When should the law-makers back off?," Juridical Tribune - Review of Comparative and International Law, Bucharest Academy of Economic Studies, vol. 4(1), pages 129-141, June.
    • Handle: RePEc:asr:journl:v:4:y:2014:i:1:p:129-141
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    References listed on IDEAS

    as
    1. repec:reg:rpubli:120 is not listed on IDEAS
    2. Spiller, Pablo T, 1996. "Institutions and Commitment," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(2), pages 421-452.
    3. Keen, Steve, 2004. "Deregulator: Judgment Day for microeconomics," Utilities Policy, Elsevier, vol. 12(3), pages 109-125, September.
    4. Guasch, J Luis & Hahn, Robert W, 1999. "The Costs and Benefits of Regulation: Implications for Developing Countries," The World Bank Research Observer, World Bank, vol. 14(1), pages 137-158, February.
    5. Winston, Clifford, 1993. "Economic Deregulation: Days of Reckoning for Microeconomists," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1263-1289, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking industry; Deregulation; Legal frameworks; Macroeconomics; Institutional Change.;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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