Banking regulation and its role in the avoidance of crises

Abstract

When considering that the banking and financial system plays a major role in the economy, good regulation has to be strictly implied as to make the financial industry smoother. Regulators must keep in mind and take into consideration the limitations of the new regulations and cater for any discrepancies that could be faced by the players of such financial industry. One main objective of this dissertation is to include an analysis of the various regulations that are being followed and implemented in the financial industry nowadays. While evaluating the necessary changes considered to be carried out in the nearest future in order to try eliminating another financial crisis, I also compared the past financial crisis. I also listed some limitations and recommendations that might act as a driving force for higher quality and more reliable financial services.