... through restructuring ofindividual financial institutions or through specific taxes on financial services, rather than throughlimiting entry. The infant industry argument against international ... factaccelerated with the entry into the EU. Increased competition, lower margins and operating expenses, an increase in financial intermediation, and improved management within the banking sector resulted ... costs in providing financial services in aparticular country. Banking margins, for example, are affected by reserve requirements (whichraise the intermediation costs), inflation (which influence...