For an example of a tightly controlled banking sector look at Ethiopia.

The Ethiopian banks [no foreign ownership is allowed] are hide-bound. Some [the newer or private] use newer technology, etc or offer more services BUT overall their lending is limited to a few borrowers. In Kenya, the banks lend to a diverse group of Kenyans. Yes, not all the deals work out as the NPLs show but private banks lending to the private sector allows for an increasing share of the GDP in private hands. No need for bailouts. If private firms collapse = they collapse.

Banks need to IMPROVE their lending systems/processes to identify high risk borrowers before the banks loan out the funds. They should NOT pass on the premium of poor borrowers onto good borrowers. That's what pisses off many borrowers.


If the Bill becomes Law as it is... there will be consolidation since the niches served by some banks will disappear or shrink.