Deregulation in an industry occurs only through legislation, issuance of an executive order from the President, or when a federal agency stops enforcing the regulation. It stimulates economic activity because it eliminates restrictions for new businesses to enter the market, which increases competition.
In some cases, deregulation may not protect the consumers’ best interests. For example, regulation in the banking Banking Fundamentals Banking fundamentals refer to the concepts and principles relating to the practice of banking. Banking is an industry that deals with credit
The securities are issued within the company's industry, without regulations to inhibit them from doing so. In the U.S., banks became deregulated due to the repeal of the Glass-Steagall Act in 1999.
As a result, many countries blamed the deregulation of the banking industry for the Global Financial Crisis of 2008. In the U.S., the Airline Deregulation Act of 1978 eliminated restraints in the airline industry.