Achievement of this goal requires a stable macroeconomic environment of sustained growth and continued low inflation. That, in turn, means that the expansion of demand must moderate into alignment with the more rapid growth rate of potential supply.
Without separation, the explicit and implicit guarantees would distort the market mechanism and spur the deposit banks to unhealthy risk-taking and expansion in their trading activities. 2. We saw the need to simplify the structure of large, complex banks.