ABSTRACT
To make the logic of the model more comprehensible, I will rely on diagrams. I will make use of Courakis’ work (1984) although to a different end. The main purpose of Courakis’ paper was to analyse the effect of regulatory constraints on the evolution of deposits and loans in less developed countries. In this chapter I concentrate my attention on the effect of regulation on banking profits, a prob lem of lesser importance in Courakis’ work.
