ABSTRACT
In this Part we have introduced into our model of the previously unregulated bank the main forms of regulatory control which were encountered in the survey made in Part 2. Although, as already noted, the problem of discriminating between purely prudential regulations and those used either occasionally or consistently for monetary policy purposes complicates both the identification of the latter and therefore also their effects, it is possible to proceed along the lines followed here and to identify the minimum and maximum effects of the various constraints. Of more importance, however, is a consideration of the effects of combinations of constraints as this is more usually the position in the real world.
