Cross-Border Entry in Retail Financial Services: Policy Implications

This chapter presents some public policy conclusions which can be derived from the theoretical reasoning and the empirical evidence presented in the preceding chapters. In particular, it looks at the implications for European competition policy and develops some policy proposals for preserving financial stability in a European retail financial services market increasingly characterised by cross-border activities. For the latter question, it focuses on the question of home country versus host country provision of deposit insurance and lender of last resort facilities which are the two main regulatory tools to attempt to make financial systems ‘run-proof’.