The article presents the motivation, objectives and effects of bank deregulation in the USA, Italy, Turkey and India. The reforms were undertaken in all those countries as it was expected that they would improve effectiveness and productivity. It was assumed that removing or limiting restrictions imposed on bank operations would unleash fiercer competition among them and that resources would start to flow to more efficient institutions. These expectations of improvement in efficiency came to be only in part and primarily in the case of India and Turkey. In the latter, deregulation was suspended at a certain moment due to a threat of financial crisis which did in fact ensue.

Deregulation of banks in highly-developed countries usually leads to their further consolidation. In the case of the USA and Italy, consolidation led to an even fiercer competition in the banking sector, while deregulation in Turkey and India led to the decentralisation of their banking systems at a certain period of time. This was a result of their excessive growth in an era of regulation. Deregulation in these countries is a complex process also because it also requires particular adjustment to the banks' ownership structure. In principle, however, private banks were slightly quicker in adapting to the new environment after deregulation.