The Impact of Government Deregulation on Bank’s Behaviors: Comparison of China and US Context

Deregulation, also known as deregulation, refers to the relaxation or removal of some controls, such as changing the controls on business entry, pricing and investment from a licensing system to a reporting system. The main reasons for deregulation are technological innovation centred on information technology and other high technologies, lower barriers to entry for natural monopolies, and the internationalization of factors of production and other changes in the socio-economic structure. Deregulation should be preceded by the design of new competition rules so that an effective competitive market structure can emerge after deregulation. The problems of regulation itself are also what prompted deregulation. Often there are inefficiencies within regulated firms that limit the pace of technological innovation; rent-seeking behaviour may arise; the increasing costs of government regulation and the slow progress in improving service quality and tariff structures and reducing tariff levels in regulated industries due to cumbersome and delayed regulatory procedures deregulation may also have a social cost, resulting in some social Therefore, this paper examines the differences between China and the United States and the different outcomes achieved through a three-way comparison of the two countries.