It can be argued that regulation prevents innovation and growth. This hurts growth and curtails efforts by banks to engage in more profit making schemes. Others argue that regulation is necessary to prevent abusive practices and ensure fair access for everyone. This allows increased opportunities for lending to poor and underserved communities, as in the case of the Community Reinvestment Act of 1971. Both sides have valid arguments to this question. The test of whether bank regulation is necessary or required is in how well the economy perform
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