Financial Deregulation and Capital Control

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Financial deregulation and capital control The financial markets for a long time were regulated following the aftershocks of the global recession which affected several economies across the globe. It was until the 1980's that the federal government passed the Deregulation and Monetary Act which was aimed at providing deregulation for the financial institutions. This gave the banks the flexibility to compete and extend their services at a much easier and faster way in a very competitive market and a less regulated environment. The aim was to provide better and affordable financial services to the consumers. The move also provided a stiff competition between the Non-banking financial Institutions and the traditional banks where they were offering services which were traditionally limited to the traditional banks only. The rules that governed the banks were lifted and banks had the freedom to venture into other financial services which were not their core business. The rapid transformation of the global financial system resulted into a hive of financial investments due to the belief that the financial system was capable of controlling itself without being closely monitored. The opening up of the financial markets attracted more investors from different economies and with the interconnection of the global economy more financial systems were integrated for ease of transactions whereby trading blocks were formed and a common currency in certain regions emerged as some of the
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