Regulation of financial institutions

Reference no: EM131225177

Regulation of Financial Institutions:

Financial institutions are subject to regulation to ensure that they do not take excessive risk and can safely facilitate the flow of funds through financial markets.

Nevertheless, during the credit crisis, individuals were concerned about using financial institutions to facilitate their financial transactions.

Why do you think the existing regulations were ineffective at ensuring a safe financial system?

Reference no: EM131225177

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