assignment 2.docx - 5 a Rules and regulations that control...

5 a)
Rules and regulations that control the operations of financial institutions are known as "financial
regulations." Regulators of financial institutions are primarily concerned with the stability of the
financial system, the protection of consumers, and the decrease of financial crimes. A series of
market-oriented changes took place in the global financial system in the 1970s that resulted in a
decrease in interest rate regulations, a reduction in investment limitations on financial institutions
and a reduction in foreign capital flows (Atellu et al.., 2021). Regulators are influenced by
financial innovation and technology progress. Every nation has its own set of rules and
regulations that apply to the same or similar activities. There is a current tendency toward more
cross-sector integration of financial supervision in the existing financial sector regulatory
framework. The Basel Accord, which mandated that international banks maintain a capital
adequacy ratio of 8 percent, was signed into law in 1998, marking a critical turning point in
banking laws. The failure of financial regulation as a whole was a contributing factor in the