The first is the length of the adjustment period required to complete the shakeout and absorb any excess capacity resulting from the high-technology investment boom. The second is the time it takes for the accumulation of investment opportunities arising from the continued flow of innovations to lead to a revival of investment spending.
Banks tended to dominate the financial sector and financial intermediation, and they were therefore the primary focus of regulation. In all cases, responsibility for regulating and supervising the banking sector rested with central banks.