BANK REGULATION FOCUSED ON ENTRY TO THE MARKET

Abstract

Nowadays, the banking is considered one of the most regulated branches of economy. So I decided to write about this kind of regulation. Because this topic is very waste, I will focus primarily on barriers to entry -- the licensing. First of all I will describe the theory of the banking regulation, its objectives and system. And then I will clear out the problematic of licensing in Czech conditions. That means, I will explain how fulfill the requirements so bank obtain this license. Without license the subject can't be considered as a bank. Then will follow the arguments that explain why the entry to this segment is so guarded and regulated. We have to consider also the opposite side of this problematic, because there are opponents of the bank regulation. They criticize the current state in the banking. Their opinions point out the imperfections of the bank regulation and its possible consequences. They will be explained in the rest of the paper