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How might possibilities for regulatory capture contribute to the large number of financial regulators and deposit insurance funds?
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- Identify regulators in sectors apart from financial services, that should be involved in the Central Bank’s Fintech Regulation Committee. Motivate why these regulators .should be involved.Banking regulation suffers from the principal-agent problem. Describe how this problem relates to regulators and politicians.Bank regulators are having a dilemma about whether to discourage banks from becoming a monopoly and at the same time promoting competition. Why?
- evaluate and discuss four reasons why it is necessary to regulate banks, especially within the context of the COVID pandemic.What is the main purpose of financial regulation? What kind of instruments may a government use to protect the economy and country from financial panic?What is financial repression and why does it exist?
- Why are not more resources allocated to the prudential regulation of the banking sector, which is plainly necessary to prevent financial crises?Explain how financialinnovation led to thegrowth of the shadowbanking systemWhy aren't greater resources given to prudential regulation of the financial sector because it is obviously necessary to avert financial crises?
- Discuss the goals of regulatory frameworks with regards to reasons governments manage regulate-es and use different regulators to policy the financial marketsWhat factors may reduce the banks’ dominance in the future? Prove explanations in detail with an exampleExplain the process of securitisation and discuss its role in the 2008 global financial crisis