Plain and simple, banks are important because they introduce efficiencies to the local as well as the global economy. Regulation and supervision of conduct has become an important part of doing business as a bank. Reasons why banks are important There are 3 reasons why banks are important to society. All three of these reasons create efficiencies in…
Regulation
Systemic risk in financial markets
Introduction The International Monetary Fund (“IMF”) has summarised the causes of the global financial crisis in three dimensions: Set out below is an analysis of these dimensions and a review of systemic risk, including what steps Regulators can take to mitigate the effect of systemic risk. 1. Flaws in financial regulation and supervision What has become…