Some Implications for Supervision and Regulation What do these trends and projections mean for bank supervision and regulation? A full answer to that question is too tall an order for today, but I would like to highlight what I consider some of the most important implications for maintaining a safe, sound, and competitive banking system.
Perhaps the best place to begin is with an understanding of the regulatory framework of Gramm-Leach-Bliley. This landmark legislation facilitated the development of truly diversified financial institutions, allowing the market system to decide what arrangements are viable.