See Randall S. Kroszner and Philip E. Strahan (forthcoming), "Regulation and Deregulation of the U.S. Banking Industry: Causes, Consequences, and Implications for the Future," in Nancy Rose, ed., Economics of Regulation, NBER Conference Volume. BIS Review 47/2009  1  restrictions, allowed the development of national banking networks.
With national networks, the fixed costs of product innovation could be spread over larger markets, making the development and marketing of new products more profitable. Many public policy decisions have affected the evolution of financial products and lending practices.