Single vs Multiple Financial Regulators

SUBMITTED BY: Amaresh Chandra Panda K H Gupta Mehul Shah SNDS Ramanish Sadhu Upasana Patra

“For example, the federal government regulates the quality of food and water, the safety of workplaces and airspaces, and the integrity of the banking and finance system.” (Bianco, Canon 2011, p 582) Regulations find out if the product is a market failure. There are two types of regulations, which are economic and social. “Economic regulations sets prices or conditions on entry of firms into an industry, where as social regulation address issues of quality and safety.” (Bianco, Canon 2011, p 582) Economic regulations are concerned with the price regulation of monopolies.

finally what provisions and laws have been put in place to protect consumers and society from big

Submitted By: Sahil Bhambri (12 DCP-097) Saksham Sharma (12 DCP-098) Sandeep Bedi (12 DCP-100) Sawan Gupta (12 DCP-104) Tanuj Arora (12 DCP-117) Abhishel Bansal (12 DCP-134)

Prior to the financial crisis, the overall responsibility for financial oversight was divided among several different agencies. These agencies and their “varying rules and standards led to certain entities not being regulated at all, with others subject to less oversight than their peer

This necessitated the need for development of regulatory measures for the industry. Bank regulation is a legal structure by which all financial

The government regulation of the financial industry by the Dodd-Frank Act was the most compelling topic of this class. A financial regulatory process was created which limits risk through the enforcement of transparency and accountability. The main objective of the Dodd-Frank Act was to provide regulation to banks that was more stringent. The FSOC was created as a result of the Dodd-Frank Act. The two main objectives of the FSCO was to stop the occurrence of another recession and to resolve persistent issues. The elimination of bailouts funded by taxpayers was another important element of this act. The CFPB also known as the Consumer Financial Protection Bureau was created as a result of the act. The consolidation of consumer protection responsibilities

Government departments are instrumental to a flourishing and secure economy. They are in place to serve their constituents and ought to keep that in mind. The Federal Deposit Insurance Corporation (FDIC) fits this well and is in place to ensure that bank users are protected in instances of economic downturn and that their money is insured. In this way, regulation is extremely necessary to ensure a stable economy in instances of financial instability. To completely understand the FDIC, it is important to understand why and how it was created, its history, major responsibilities and who the leaders are.

Regulation can be seen as an interference with innovation and creativity. Rather than ensuring that a firm does not disobey the Acts, regulation may be responsible for the inefficiency of a firm. For example, the only individuals capable of determining the most effective and efficient methods of managing an industry are those who are active participants in it, not individuals who are not “in the loop” of managing a successful international business such as the lawmakers and politicians who enforce these acts. The only possible and sound way to determine the best move for a firm is through the wisdom gained with experience and intimate knowledge on the subject. Only then would competition within the free market be

Problems facing regulatory government supports deregulation. First, the cost in regulatory jurisdictions is quite high. Regulated markets tend to offer fewer benefits to society than free markets. Also, private sectors are self-regulating by employing independent external auditors whereas it is a general observation that lawsuits are an incentive to provision quality services by firms. Regulation reforms enshrined in the constitution monitor the legislation, executive and judicial structure of the regulatory agencies as the government seeks to create and maintain a better working environment in the society. Traditional managerial approach to governing administration is characterized by red-tape and bureaucratic one sided decision making whereas the new public management approach focuses mainly on bilateral decision-making and is compliance-oriented. Political strategies have transformed from a self-centered, corrupt inclusion in the agencies to a more open centered approach that focuses on its citizens’ welfare, just as the legalistic approach focuses on maintaining reasonability in the regulation process with keen observation of the rule of

1(a) Financial System is a complex yet connected system that consist of financial intermediaries, financial institutions and financial assets.

The purpose of this paper is to show that the “regulatory capture” has played a role not easily measurable in causing the global financial crisis. To illustrate this, the first step will to describe the “regulatory capture” in its three possible qualifications; then, I will explain, providing some examples, how each of these categories played a possible role in posing the basis for the financial crisis. While illustrating the different forms of capture I will present some questions that leave space to different answers. Finally, I will conclude that the regulatory capture have surely played a role in generating the crisis, but it is not possible to evaluate the effective role it had in causing it.

The goal of financial regulation is to increase efficiency in the market, as well as enhance the market 's ability to absorb shock caused by financial instability. There are many reasons for financial instability, but it can be narrowed down to

Mr. Ashish P. Mohod1 , Mr. Najim A. Sheikh2 , Mr. Bharat S. Dhak3 , Ms. Mausami Sawarkar4

Regulators of financial matters and performance in a given country or region are often faced with the difficult task of ensuring that the performance of the economy is always positive. This is because the economy of a country directly influences the standard of living in the country through factors such as employment and the overall prices of commodities in the country. to effectively control, the performance of the economy, regulators make use of various tools that are at their disposal.