Deposit interest rates in the United States were fixed by regulators until the 1970s and rarely changed, so that fixed-rate, term loans did not create significant income volatility. By the end of the 1970s, however, bankers in the United States were faced simultaneously with deregulation of interest rates on deposits and rising interest rates due to the prevailing high inflation.
At the end of the day, the decision about the future for financial services will be a political one. But, in any case, it is important that we all work together to find pragmatic solutions under any kind of framework. And a lot of difficult tasks lie ahead of us – for financial firms as well as for central banks and supervisors. 4.