Deregulation of Savings Bank’s Deposit Interest Rates

For long, the regulated savings bank (SB) interest rate remained downward sticky even when the market conditions were favourable for an increase. This could be attributed, among other reasons, to commercial banks’ prevail in convincing the Reserve Bank of India (RBI) on its excessive cost in maintaining such accounts. However, with the advent of technology in servicing the account (like […]

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The Real Effects of U.S. Banking Deregulation

This paper summarizes the effects of deregulation of restrictions on bank entry and expansion on the real economy. The evidence suggests that following state-level deregulation of restrictions on branching, state economic growth accelerated. This better growth performance was especially pronounced in the entrepreneurial sector. In addition to faster growth, macroeconomic stability improved with interstate deregulation that allowed that banking system […]

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