AbstractThe following sections are included:Executive SummaryProposalWhy Restricting Activities Is the SolutionEvolution of Current Financial StructureRegulationIncreased CompetitionShadow BankingExpansion of Bank ActivitiesImplications for Financial Structure, Stability, and RiskChanges in...

AbstractThe following sections are included:IntroductionA Mixed Record: The LiteratureThe Bright SideThe Dark SideShadow banks and securitizationLow Interest Rates and the Fall in Credit StandardsThe Nonlinear Effect of Financial Development: Some EvidenceNonlinear Effect on Long-Run...

AbstractThe following sections are included:IntroductionThe Financial Possibility FrontierTaxonomy of Financial Sector ChallengesThe Role of Competition in Financial DeepeningThe Role of Financial InnovationGlobalizationWhat Role for Government?Beyond Policies—All Financial Sector Policy is...

AbstractThe following sections are included:IntroductionForeign bank presenceImpact of Foreign Banks on Domestic CreditForeign Banks and Financial StabilityFinal RemarksReferences