Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Policy Watch: The Repeal of Glass-Steagall and the Advent of Broad Banking
Journal of Economic Perspectives
vol. 14,
no. 2, Spring 2000
(pp. 191–204)
(Complimentary)
Abstract
Enactment of the Gramm-Leach-Bliley Act (GLBA) in November 1999 effectively repealed the long-standing prohibitions on the mixing of banking with securities or insurance businesses and thus permits "broad banking." We attribute repeal of these prohibitions to the increasingly persuasive evidence from academic studies of the pre-Glass-Steagall era, the recent favorable experience in the United States following partial deregulation of banking activities, the experience of banking systems abroad with broader scopes for banking activities, and rapid technological change in telecommunications and data processing. How regulators will in practice coordinate their efforts so that the safety and soundness of the banking system is maintained efficiently remains to be seen.Citation
Barth, James, R., R. Dan Brumbaugh, and James A. Wilcox. 2000. "Policy Watch: The Repeal of Glass-Steagall and the Advent of Broad Banking." Journal of Economic Perspectives, 14 (2): 191–204. DOI: 10.1257/jep.14.2.191JEL Classification
- G28 Financial Institutions and Services: Government Policy and Regulation
- G21 Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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