system and the deregulation of banking and finance over the… Show more The development of the “shadow banking” system and the deregulation of banking and finance over the last thirty years has today contributed to: (a) less concentration in the industry as many more new, start-up firms were able to enter. (b) more stability in the financial sector as big banks are able to diversify. (c) the largest financial crisis since the Great Depression (d) a smaller role for the Federal Reserve as a lender of last resort. • Show less