Abstract
To this point, discussion of potential sources of interplay between bank market structure and regulation has emphasized how market structure influences the impacts of regulatory policies. This chapter focuses on regulatory and supervisory policies, particularly in the context of the Basel II standards, and how these policies themselves can impinge on the structure of banking markets. In addition, the chapter considers the implications of competition among bank regulators, a state of affairs that has been commonplace in the United States for some time and which likely will become more pervasive elsewhere in the coming years.
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