Discuss the rationale for regulating the banking industry

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(a) Briefly discuss the rationale for regulating the banking industry.

(b) In the financial markets, the principles of regulation apply in a certain manner, briefly explain them.

(c) The evidence on whether bank contagion is a serious matter is mixed and controversial. In a comprehensive paper, Kaufman (1994) reviewed a number of contagion theories, and related evidence. Briefly explain his main findings.

Reference no: EM133115366

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