Despite the various reforms of prudential banking regulation from 1989 to 2002, and the substantial addition of new prudential regulations during that period, there were three key policy errors, all of which had been at the core of the banking disasters of the 1980s, which returned with a...

Last decade's financial crisis sparked a flurry of new banking and finance regulation, highlighted by the Dodd–Frank Act and changes to housing finance. There is a growing realization among policy experts that that regulation has largely flopped, doing little to improve the financial system's...

Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks – that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...