Publication Date
Financial Markets Group Special Papers SP 59
This article seeks critically to assess the approach of the EC Single Market to banking regulation in the light of the key economic issues in this field, viewed both from a theoretical and a practical point of view. The paper is structured as follows; the first section discusses the key market failures in banking, and the second outlines the regulatory response in general terms. The third section describes the measures and proposals incorporated in the Single Market; and the fourth then seeks to assess the issues raised by the EC measures in the light both of the theory and the stated objectives of the Single Market programme. The section also looks briefly at the issues raised by the proposed move to EMU.
