Is universal banking, the model that the United States has now turned to, appropriate? Can we apply the same regulatory regime for both wholesale and retail banks? The burden of all the above questions is to identify the drawbacks in the present regulatory regimes and indicate possible solutions. There is no doubt that we must pursue all these questions.
In doing so, I would urge that we remember two things. The first thing to remember is that no one size fits all. For example, universal banking may be good in some countries and in some situations, and not so in others. The second thing to remember is that some regulations arguably have been behind the curve.