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A Dangerous Embrace; Reregulation
Oleh:
[s.n]
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
The Economist (http://search.proquest.com/) vol. 399 no. 8733 (May 2011)
,
page 5-8.
Topik:
Regulation of Financial Institutions
;
Many Countries
;
Banking Industry
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
EE29.66
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
A soldier hunches over the sights of a heavy machine gun. Its barrel points at the main gate. Out in front, guards briskly move on any cars that loiter. The headquarters of most central banks are described as fortress-like. Few seem quite as impenetrable as that of the Reserve Bank of India. Its department of banking supervision guards the country's financial system with equal zeal. Before the financial crisis such restrictions were seen as signs of backwardness. In general, banking and capital markets the world over had been steadily liberalising. Limits on foreign ownership of banks and on the kinds of transactions they were able to engage in were being lifted. Rich countries with fairly open markets were deregulating faster than others. The crisis put an end to that. Supervisors in many developing countries are now saying that tight regulations saved them from getting into trouble. Their banks may also have had better things to do with their money than buy worthless claims on American mortgages. At any rate, regulators now have a good excuse to slow or even reverse the opening of financial markets. In so doing, however, they are also keeping out some rather useful financial innovations that got themselves a bad name.
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