If governments do not act to free more completely the financial institutions they supervise from today's product-line and geographic restrictions, nonregulated financial intermediaries will move in and eventually drive out the more regulated financial institutions from one market after another.

Question

Quizplus · Accepted Answer

Nonregulated financial intermediaries often have more flexibility to innovate and adapt to market needs compared to regulated financial institutions, which are bound by product-line and geographic restrictions. If these restrictions are not relaxed, regulated institutions may lose competitive ground to nonregulated entities, potentially leading to their displacement from various markets.

If Governments Do Not Act to Free More Completely the Financial