ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Example of Deregulation in the Banking Industry It allowed banks to compete with international competitors and invest their money into securities without regulations to inhibit them from doing so. In the U.S., banks became deregulated due to the repeal of the Glass-Steagall Act in 1999.

Detailed explanation-2: -deregulation, removal or reduction of laws or other demands of governmental control. Deregulation often takes the form of eliminating a regulation entirely or altering an existing regulation to reduce its impact.

Detailed explanation-3: -Deregulation opens up the industry to more players and makes it more competitive. Deregulation opens investment opportunities and promotes economic growth. Regulations may be replaced with reporting and compliance requirements to monitor the activities of the industry.

Detailed explanation-4: -In addition, there have been regulatory innovations, usually suggested by economists, such as emissions trading. Deregulation can be distinguished from privatization, which transfers state-owned businesses to the private sector.