8 Retail banking integration significantly weakened the relationship between local capital and local credit supply:  See Krozner, R. and Strahan, P. (2014), “Regulation and Deregulation of the U.S. Banking Industry: Causes, Consequences, and Implications for the Future", in Economic Regulation and Its Reform: What Have We Learned?, National Bureau of Economic Research. 9 Furceri, D. and Zdzienicka, A.
Financial stability has become a fundamental objective of policy-making once again, and central banks are heavily involved in this endeavor, which calls for a thorough overhaul of financial regulation and supervision. Tomorrow’s financial system will be different from the one that has developed over the last two decades.