Which policy action was among the early steps toward deregulating banks?

• A. The Glass-Steagall Act
• B. Amendments to the Bank Holding Company Act
• C. The Dodd-Frank Act
• D. Gramm-Leach-Bliley Act

Answer: (B)

Deregulation in banking unfolded gradually by loosening restrictions on how bank holding companies could operate. The amendments to the Bank Holding Company Act relaxed many of the limits on interstate banking and the range of activities bank holding companies could engage in. This shift allowed banks to grow bigger and operate more broadly than before, setting the stage for further deregulation in the years that followed. By contrast, the Glass-Steagall Act established strict separations between commercial and investment banking, reinforcing regulation; the Gramm-Leach-Bliley Act later repealed parts of Glass-Steagall but represents a later step in deregulation; and the Dodd-Frank Act in 2010 tightened oversight rather than loosened it.