| I seek to examine the dynamic interconnection between a range of disparate regulatory interventions that influence and/or constrain the strategic positioning of financial firms, which may also possibly give rise to a competitive strategy used by national banks that may be accessory to the creation of anti-competitive practices, albeit justified in the name of macroeconomic prudence and supervision. I illustrate these complexities in the case of Canada. In turn, I concluded that the gains from the liberalisation of national banking sectors are only realised if policy interventions are left untouched. In this sense, the process of liberalisation involves reaching a consensus on where to draw the line between regulations that are barriers to trade and regulations that are necessary for prudential purposes. |
