Those sectors are, in some ways, over-regulated. Too much regulation and red tape can breed incentives for the abuse of power, mismanagement and corruption. It also acts as a disincentive for the private sector. And we must remember here that it is always the private sector that functions as the engine of the economy. However, effective regulation is sorely lacking in other sectors.
Recognizing the importance of clarity and transparency in this space, and to facilitate and evaluate these activities in a consistent manner, the Board is in the process of issuing clearer guidance around the application and review process for novel bank charters and account access at the Federal Reserve.