Question

The argument states that some authorities believe that traditional banks still exist only because governments subsidize them with cheap deposit insurance, while other authorities argue that banks are being “regulated to death.” Are banks dying?

Answer 1

Banks are generally regulted by different regulatory bodies in different countries, for example in America banks are regulated by the Federal reserve. All the financial and regulations that taken by those regulatory bodies will affect the banks financial position every time they do.

The banks are being sometimes regulated to death by the regulators by holding critical policy making within their hand and makes policies without interacting with the active banks and their representatives. The feb rates and all the policies made by the Federal reserve sometimes deeply hurts the financial position of the banks. Hence the banks are being regulated to death