Franchise Value and the Dynamics of Financial Liberalization: The Use of Capital Requirements and Deposit Rate Controls for Prudential Regulation

By Thomas HellmannKevin MurdockJoseph Stiglitz
1999| Working Paper No. 1467

Over the last three decades, there has been a substantial shift in financial market policy towards the promotion of financial liberalization. Policy makers around the globe have been preoccupied with deregulating interest rates, lifting restrictions on bank portfolios and enticing competition in financial services.