Regulation of banking and financial services essay

In the stock offering process, a company sells a portion of the equity or ownership of itself to the investing public. The very first time a company chooses to sell equity, this offering of equity is transacted through a process called an initial public offering of stock commonly known as an IPO. Through the IPO process, stock in a company is created and sold to the public.

Regulation of banking and financial services essay

Hire Writer Prudential Regulation is concerned with consumer protection. It relates to monitoring and supervision of financial institutions asset quality and capital adequacy.

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It is undertaken by the FSA and aims to ensure that firms a financially sounde. FinallyConduct of Business Regulation focuses on how banks conduct their business.

It establishes rules to reduce the likelihood that consumer receive bad advicesupplying institutions become insolvent before contract maturescontracts turn out to be different from what the customer was anticipatingfraud and misrepresentation happening or employees of financial intermediaries act incompetently.

All these services are expensive. Cost of compliance will be passed on to consumers, resulting in higher costs of financial services. The Financial Services Authority FSA is an independent non-governmental Regulating body for all providers of financial services in the United Kingdom that has the objective to maintain confidence in the UK financial system, to promote public understanding of the financial systemto secure an appropriate degree of protection for consumers and to reduce the scope for financial crime.

Regulation of banking and financial services essay

The Basel Accords are a set of agreements implemented in the EU by the Basel Committee on Bank Supervision to ensure financial soundness of credit institutions and investment firms.

They set requirements on banking regulations in regards to capital risk, market risk and operational risk. The purpose of the accords is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.

Basel I, was issued in and focuses on the capital adequacy of financial institutions. Basel IIfocuses on three main areas, including minimum capital requirements, supervisory review and market discipline, which are known as the three pillars.

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The focus of this accord is to strengthen international banking requirements as well as to supervise and enforce these requirements. The absence of such regulations would produce sub-optimal results and reduce consumer welfare. For instance, Last 2 years we could observe a lack of good regulation during the UBS rogue trader scandalwhen Kweku Adoboli managed to loose over 2 billion dollars, due to unauthorized trading.

How to cite this page Choose cite format:The immediate or proximate cause of the crisis in was the failure or risk of failure at major financial institutions globally, starting with the rescue of investment bank Bear Stearns in March and the failure of Lehman Brothers in September Many of these institutions had invested in risky securities that lost much or all of their value when U.S.

and European housing bubbles.

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AEI experts offer insightful analysis and commentary with op-eds from the nation's top newspapers and magazines, covering a variety of policy areas. Database of FREE banking essays - We have thousands of free essays across a wide range of subject areas. Search to find a specific banking essay or browse from the list below: Introduction Berger, Molyneux and Wilson () are of the view that banks provide a full range of financial services like banking, securities, and insurance.

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Regulation of banking and financial services essay

That was six years ago, when The Bodley Head, an imprint of Random House, and the.

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