Financial regulation

rules or restrictions for financial institutions From Wikipedia, the free encyclopedia

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Financial regulation is supervision of financial institutions to certain rules and guidelines.

The aim is to keep the financial system honest and legal. Regulation may be done by either a government or non-government organization. Also, financial regulation has increased the variety of financial products available.

In the early modern period, the Dutch were the pioneers in financial regulation.[1] The first recorded regulation was a ban on short selling done by the Dutch authorities in 1610.[2]

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Aims

The objectives of financial regulators are usually:[3]

  • market confidence – to keep confidence in the financial system
  • financial stability
  • consumer protection – getting the right protection for consumers.

References

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