ON THE USE OF COMPETITION AND THE FAILURES OF REGULATION IN FINANCIAL SPHERE
After destructive financial crisis of 2008 many economists — financial market experts said in favor of restricting the competition in the financial sphere and state regulation strengthening in order to protect economy from the destructive impact of financial markets. That is, the critical relation to competition as a whole and to financial innovations in particular prevails. In that article we try to reconcile competition and regulation, asserting that the financial (bank) system should also be opened to the influence of «creative destruction» which is a part of an innovative competition. The role of goverment regulation of financial sector on an example of mortgage crisis in the USA also is critically considered.