Secondly, we must not forget that the cost of bank failures is not limited to rescuing banks or bailing out depositors but there can be large real economy costs. Thus, a well reasoned approach of regulating ownership of banks is a necessary concomitant of a stable financial system. Anti-tying measures I would now refer to an issue which is at the frontiers of regulation.
Banks and financial institutions are increasingly offering a broad measure of financial services and thereby endeavoring to build customer loyalty. In some countries there are anti-tying restrictions to prevent banks from forcing customers to take unwanted products to obtain needed services. These issues are interlinked to corporate ethics, a robust internal control culture and transparent disclosures.