A step to Basel 1.5
Risk analysis
The highly fragmented nature of the US banking system is a reflection of the country's federal political structure and long history of rivalry between rural and urban interests. While a massive banking consolidation has occurred in the past 20 years, there are still many thousands of small local banking and thrift institutions across the country. Moreover, these institutions tend to be well connected with local politicians and thereby exercise significant influence in Washington, especially
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