Economics Year 13 revision Day 22 - Financial Regulation
On day 22 of the Year 13 Recap, we review the basics behind financial regulation and why this has grown in prominence since the 2008 financial crisis.
Regulation is enforced in an industry to curb the activities and conduct of firms to ensure that standards are maintained, and consumers are not being exploited.
The extension of regulation towards the financial sector is no different. It is imposed to ensure that banks and staff that operate within them, comply with the basic rules and standards that are expected of them to avoid a repeat of some of the unethical behaviour and actions undertaken in the lead up to the 2008 financial crisis. However, there may be instances where imposing new strands of red tape on banks can be self-defeating rather than beneficial.
Here Jack guides you through the revision slide on financial regulation: