Impact of regulation on competition in commercial and investment banking

Authored by: Anoop Rai , George J. Papaioannou , A. Sinan Cebenoyan

The Routledge Companion to Financial Services Marketing

Print publication date:  December  2014
Online publication date:  December  2014

Print ISBN: 9780415829144
eBook ISBN: 9780203517390
Adobe ISBN: 9781134095551

10.4324/9780203517390.ch1

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Abstract

Financial institutions play a unique role in the saving–investment process of an economy by participating in the creation of credit and mediating the flow of funds between savers and investors. They also assist central banks in their implementation of monetary policy by serving as conduits in achieving money supply and interest rate targets. The failure of a major commercial bank can have a significant negative impact on these functions and disrupt the saving–investment process, hurting the real sector of the economy.

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