When the US allowed foreign banks to enter the US capital market and domestic banks to expand their operations overseas in the late 1970s, it was due to deregulation which is the reduction of state regulations.
Deregulation is the removal or reduction of state regulations, usually in the economic sphere. It is the repeal of governmental economic regulation. While companies complain about how a regulation is impeding their ability to compete, the government removes it.
The declared reasoning for deregulation is frequently that few or no and simpler regulations will increase competitiveness, resulting in higher productivity, greater efficiency, and lower overall prices.
Learn more on Deregulation -
https://brainly.com/question/1129616
#SPJ4
