I like the author's analogy and I'm pretty sure this country has regulations around selling food, but there isn't much of market consolidation. People open and own small restaurants and it's not only chains and franchises all around. People even start new banks and get licenses and the product is quite good. And there are things that are more regulated than opening a bank. I suspect that the CRA is not on a level of operating a bank and somewhat more lax than operating a restaurant.
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"which helps solidify existing markets and prevents new competitors from stepping up"
So exactly like any other regulation.
I like the author's analogy and I'm pretty sure this country has regulations around selling food, but there isn't much of market consolidation. People open and own small restaurants and it's not only chains and franchises all around. People even start new banks and get licenses and the product is quite good. And there are things that are more regulated than opening a bank. I suspect that the CRA is not on a level of operating a bank and somewhat more lax than operating a restaurant.