A FIRST OUTLINE .docVIP

5/24 An Overall Perspective on Banking Regulation By Xavier Freixas and Anthony M. Santomero Introduction Recently, the theory of banking regulation has undergone important changes. This has been the consequence of a number of compounding effects that have been occurring in the financial sector. First among these is on-going financial innovation, which has caused a virtual revolution in both financial instruments and markets. As a result, the markets and institutions that must be regulated have changed substantially over time. At the same time, regulation has evolved, as the regulato