This type of consumer assessment is of special interest also to the central bank, as the regulator responsible for maintaining the stability and soundness of the industry, and confidence in the financial system as a whole. 3. The public has a legitimate and fundamental interest in an efficient, sound, liquid and wellfunctioning banking system, that is well-regulated within a stable macroeconomic environment.
At the Federal Reserve, we are particularly interested in effects that Basel II could have on banking markets, particularly ones that could distort existing markets that work well. In that vein, we have published several white papers analyzing the potential impact on specific aspects of banking, such as small-business lending, mortgage lending, and mergers and acquisitions. A paper on credit cards is forthcoming.