[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-322127-105":59,"doc-detail-322127-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","regulation-and-the-future-of-banking","Regulation and the Future of Banking","","The text argues that banking regulation has historically shaped the industry, but the current fragmented regulatory structure no longer serves the demands of the twenty-first century. It explains how Depression-era frameworks and the belief in centralized government planning have lost credibility, while technology and private markets increase the ability to adapt. It then outlines why traditional “boxes” and constraints on price, location, and product are becoming obsolete, and discusses the need for future regulatory reform.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/regulation-and-the-future-of-banking/322127/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/regulation-and-the-future-of-banking/322127.png","ImageObject",300,407,{"name":92,"@type":93},"Aurelia","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-24","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":52},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"Why is regulation described as fundamental to banking as we know it?","Question",{"text":112,"@type":113},"Because regulation defined what banking organizations were allowed to do, how they were structured, and how supervisors and examiners ensured compliance over decades.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why does the author say the current regulatory structure will not meet 21st-century needs?",{"text":117,"@type":113},"The regulatory system is overly fragmented, and it will not adapt quickly enough to shifting demands in an environment shaped by private property rights and market economics.",{"name":119,"@type":110,"acceptedAnswer":120},"What future changes does the text suggest for regulatory “boxes” and restrictions?",{"text":121,"@type":113},"It argues that the arbitrary compartmentalization of finance is being dismantled and that restrictions on price, location, and product are largely becoming irrelevant or unworkable.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},322127,1790240612,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":52,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},1099514068365,"https://ap-avatar.wpscdn.com/avatar/10000253d8d9f28188e?x-image-process=image/resize,m_fixed,w_180,h_180&k=1794309523707217728","by Jerry L.Jordan  \nIhe future of banking cannot be dis-cussed without talking about regulation.Simply put,regulationis what has de-fined banking as we know it.For morethan 60 years,the Glass-Steagall Acthas defined what a banking organizationhas been allowed to do;the Douglas andother bank holding company acts havedefined the corporate form required todo it;the national or state bankingauthorities,deposit insurance agencies,and Federal Reserve have defined howto do it;and their supervisors and exam-iners have tried to ensure that it wasdone that way.  \nThe reason we can discuss the future ofbanking without focusing entirely onregulation is that the current highly frag-mented regulatory structure simply willnot serve the needs of the twenty-firstcentury.The power of private propertyrights operating through a market econ-omy is that,if consumers want some-thing and are willing to pay the price,producers will find a way to supplyit.Regulatory restraints impede marketadjustments to shifting demandsEmerg-ing technologies and individuals'inge-nuity will ultimately get over or aroundthose regulatory barriers,but it willtaketime and absorb resources.  \nIn short,regulation “gums up the works.”In the end,it will not prevent producersfrom satisfying consumers'desiresexcept at the margin,where higher costsand prices convey the burden of regula-tion to the consumers who must bear it.  \n# Regulationand the Future of Banking\n\nIam optimistic enough about our politi-cal system to believe that if a regulationis not producing some benefit commen-surate with the burden it imposes onconsumers,such regulation eventuallywill be removed—if not erased,then atleast not enforced.To start envisioningthe future regulatory environment ofbanking,we can pose two questions.What kinds of regulation will be neces-sary in the future,and how fast might weexpect to move from today's outmodedsystem to an era in which different regu-lations make more sense?  \n## ■ Regulation Today\n\nOur current regulatory framework is aproduct of the 1930s,designed underemergency conditions of economicdepression that we all hope henceforthwill be irrelevant.More important,theregulatory framework was created on thecrest of the intellectual wave of beliefthat government intervention couldmake the world better by planning andcontrolling economic activity.  \nNow,despite stunning advances in com-puter and communications technologythat might facilitate centralized control,the waveof belief in the efficacy ofgov-ernment intervention has crashed.As aresult,hundreds of millions of peoplearound the world have been freed to relyon theirown initiative and on privatemarkets,without conforming to agov-ernment plan—except in our financialsector.Here,statutory distinctions remainin place,guiding financial activities.  \nAugust 1,1995  \nHow must the regulatory structure ofthe financial industry change to meetthe needs of the next century?Theanswer involves dismantling tradi-tional partitions that have separatedfirms,rethinking functional regula-tion policies,and squarely facing theproblem of moral hazard created bythe federal safety net.  \nThe landmark financial legislation of the1930s created distinctions among threefinancia market boxes—labeled\"depository institutions,\"\"securitiesunderwriting and sales,\"and “insuranceunderwriting and sales.\"In principle,each of these gigantic boxes could besubdivided into constituent compart-ments:Depositories included separatecompartments for commercial banks,savings and loans,mutual savings banks,credit unions,and industrial banks;thesecurities industry was subdivided intobrokerage firms,securities dealers,mort-gage companies,and finance companies;insurance included brokers,dealers,underwriters,and rating agencies.  \nAs long as allthese compartments con-tained separate,noncompeting markets,then regulators could try to enforce dif-ferent rules within each box.With littledanger of substitution,the costs of regu-lation could be added to price in onecompartment witho","cbCaiapYtIYDXCRY","https://ap.wps.com/l/cbCaiapYtIYDXCRY","pdf",1316197,"English","# Regulation and the Future of Banking\n## ■ Regulation Today\n## ■ Regulation in the Future","[{\"question\":\"Why is regulation described as fundamental to banking as we know it?\",\"answer\":\"Because regulation defined what banking organizations were allowed to do, how they were structured, and how supervisors and examiners ensured compliance over decades.\"},{\"question\":\"Why does the author say the current regulatory structure will not meet 21st-century needs?\",\"answer\":\"The regulatory system is overly fragmented, and it will not adapt quickly enough to shifting demands in an environment shaped by private property rights and market economics.\"},{\"question\":\"What future changes does the text suggest for regulatory “boxes” and restrictions?\",\"answer\":\"It argues that the arbitrary compartmentalization of finance is being dismantled and that restrictions on price, location, and product are largely becoming irrelevant or unworkable.\"}]","Regulation and the Future of Banking | PDF",1789961116,13]