DALLAS, Dec. 15, 2015 /PRNewswire-USNewswire/ -- The "too big to fail" doctrine that resulted from the 2008 Financial Crisis is dampening competition and hurting small banks, according to a new study from the National Center for Policy Analysis by economist John Berlau.
"In the financial industry, as in any other industry, greater competition can help bring stability, innovation, and choice," says Berlau. "These unofficial government policies have effectively stunted growth in the community banking sector, and now businesses and consumers are paying the price."
In order to end the "too big to fail" doctrine and promote competition, Congress should:
"It is time to bring what the great economist Joseph Schumpeter called 'creative destruction' to the banking industry, by bringing in the competition from new entrants that exists in every other industry," says Berlau. "There are no banks like new banks."
John Berlau is a senior fellow at the Competitive Enterprise Institute. Mr. Berlau has written about the impact of public policy on entrepreneurship and the investing public for many publications and is a frequent guest on many radio and television.
Banks That Are "Too Big To Fail" Need Competition: http://www.ncpa.org/pub/banks-that-are-too-big-to-fail-need-competition
The National Center for Policy Analysis (NCPA) is a nonprofit, nonpartisan public policy research organization, established in 1983. We bring together the best and brightest minds to tackle the country's most difficult public policy problems — in health care, taxes, retirement, education, energy and the environment. Visit our website today for more information.
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SOURCE National Center for Policy Analysis
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