We are hopeful that the 105th Congress will succeed where its predecessors have failed. Meanwhile, the regulatory agencies have acted to expand bank powers within the limits of existing law. The Federal Reserve has proposed both liberalization of Section 20 activities and expedited procedures for processing applications under Regulation Y.
4  BIS Review 124/2009  proliferation of macroeconomic models that flesh out the interconnections between risks, liquidity, and capital in the financial system and their implications for the real economy. Research on the credit channel and developments within the financial sector should be paired with work on asset prices and their role in the transmission of economic shocks and monetary policy.