I’ve been asked to talk today about what’s driving this competition in the deposit market, and how it might develop from here. I’m going to stick to that brief, but I also want to place it in a broader context by looking at how competition has evolved over a longer period.
Evolution of competition in the post-deregulation period I’ll take as a starting point a snapshot of the aggregate balance sheet of the banking system in 1980 – just before the main sweep of financial deregulation got under way (Table 1). Banks’ balance sheets back then looked rather different from the way they do now.