Banking Practice Exam

Question: 1 / 400

Which act is known for promoting financial innovation and deregulation in banking?

Riegle-Neal Interstate Banking and Branching Efficiency Act

Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act is recognized for promoting financial innovation and deregulation in the banking sector. Enacted in 1999, this legislation effectively dismantled the barriers established by the Glass-Steagall Act, which had kept commercial banking, investment banking, and insurance services separate. By allowing these financial institutions to consolidate and offer a broader range of services, the Act aimed to increase competition and enhance efficiency within the financial markets.

This deregulatory aspect was intended to adapt to the evolving financial landscape and encourage financial innovation, leading to the creation of new financial products and services that could benefit consumers and businesses. As a result, the Act played a significant role in shaping the modern banking industry by facilitating greater integration across the different segments of financial services.

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Dodd-Frank Act

Sarbanes-Oxley Act

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