In terms of informal barriers to entry, one such barrier may come about from the practical difficulties customers face switching between banks. Shifting one’s banking activities from bank A to bank B is usually a more involved process than shifting between cellphone providers or electricity companies.
All in all, it is likely that banks will be able to maintain the more conservative funding pattern they have put in place recently. Conclusion Let me sum up. The credit boom that began in the mid 1990s ended with the global financial crisis.