[brmgb]

Unsurprisingly, highly regulated sectors like banking where entering is extremely hard display cartel like behaviors. There is no incentive coming from the competition so why would anyone lower the net interest margin. In this context, I think a windfall tax somehow makes sense. Then again, I'm pretty sure it's going to be misused by the government. I would much rather see regulation forcing banks to raise interest rate on deposits but well at least this goes somewhat in the right direction.

[toomuchtodo]

I trust governments more than banks and the people who run banks. More regulation is welcome, and occasionally, one off policy hacks are needed vs slowly tightening the regulatory regime (which gives banks time to adapt and avoid or evade; not good!). Move fast and regulate systemic systems.

[nequo]

> I would much rather see regulation forcing banks to raise interest rate on deposits

Regulation that increases competition would be even better. It seems like that would be the underlying problem.

[brmgb]

I am not sure myself. The past two decades have shown that banking is a sector which needs to be tightly regulated and bankers can never be trusted to not do utterly stupid things if there is even the slighest hint of profits. Honestly, I would be fine with the banking sector being nationalised at this point at least for the retail part. We are already bailing out banks when they fail so let's be coherent.

It's entirely technologically possible for central banks to take over retail banking at this point and Brazil has demonstrated nicely that taking over payment processing would be a net improvement for everyone. Honestly, I don't understand why we haven't done it already but I suppose entranched interests are partly to blame.

[l33t7332273]

But what does regulation that makes it easier to start a bank look like?

It seems hard to do without reducing requirements for cash on hand which, which can be a disaster.

[bastardoperator]

What kind of competition would you like to see in the banking sector? All banks look exactly the same from this vantage point...

[johngladtj]

Regulation is what prevents competition so...

[gruez]

>Unsurprisingly, highly regulated sectors like banking where entering is extremely hard display cartel like behaviors. There is no incentive coming from the competition so why would anyone lower the net interest margin. In this context, I think a windfall tax somehow makes sense. Then

I'm not sure what the banking market is like in Italy, but in the US it's trivially easy to find banks that pay close to or above fed daily funds rates[1]. Sure, your average main st or wall st bank might still be paying 0.1% interest, but there isn't exactly lack of competition either.

[1] first result on google: https://www.bankrate.com/banking/savings/best-high-yield-int...

[brmgb]

> I'm not sure what the banking market is like in Italy

Significantly less competitive than in the USA.