StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Role of De-Regulation of the Financial System - Essay Example

Cite this document
Summary
"The Role of De-Regulation of the Financial System" paper highlights deregulation and its role towards the financial system to advance the interests of finance capital. Deregulation refers to the reduction of the power of the government on the industries…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
The Role of De-Regulation of the Financial System
Read Text Preview

Extract of sample "The Role of De-Regulation of the Financial System"

Deregulation refers to the system of moving away from the range of regulations of the activities related to finance. It helps the organizations to acquire their objective’s assistance, monetary policies, and financing in the public sector among others (Strahan, 2002). In various instances, the deregulation acts have been imposed focusing on the financial systems of industrial sectors in various countries. For example, one of the most crucial changes in the financial system’s regulations was the Gramm-Leach- Bliley Act, which was enacted in the US in the year 1999. Similarly, in Australia, the Financial Management and Accountability Act (FMA Act) was implemented in the year 1997 to ensure deregulation in the financial system of various industrial sectors.

These Acts, in turn, resulted in lessening the level of competition among the investment banks, traditional banks, and various insurance firms. Furthermore, this act allowed the companies to take part in each and every segment of the markets based on specific situations.

The deregulation in relation to the financial liberalization aspect has been comparatively a current experience in the context of globalization. The deregulation reforms have been applied in major countries all over the world through certain steps or procedures such as China, the United States, and Australia. It is in this context that deregulation i.e. lesser intervention of the government of a country has certain roles to play towards the financial systems in the economy as deregulation reforms tend to have string impacts over the financial sectors of every country fueling the scope of globalization (Clarke & Islam, 2004). It is worth mentioning that deregulation has certain advantages as well as certain disadvantages towards any economy and its financial system.

For instance, deregulation measures enacted in a financial system of an economy can motivate business entities to take part in the industrialization process more actively than compared to the period of the regulated financial system. 

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The role of de-regulation of the finacial system Essay - 1, n.d.)
The role of de-regulation of the finacial system Essay - 1. https://studentshare.org/sociology/1765380-the-role-of-de-regulation-of-the-finacial-system
(The Role of De-Regulation of the Finacial System Essay - 1)
The Role of De-Regulation of the Finacial System Essay - 1. https://studentshare.org/sociology/1765380-the-role-of-de-regulation-of-the-finacial-system.
“The Role of De-Regulation of the Finacial System Essay - 1”. https://studentshare.org/sociology/1765380-the-role-of-de-regulation-of-the-finacial-system.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Role of De-Regulation of the Financial System

The role of de-regulation of the finacial system

The Role of De-Regulation of the Financial System Overview Deregulation is the process where the companies or the financial institutes obtain more independence or freedom to compete and to operate due to the various changes in the laws related to the financial sector.... For example, one of the most crucial changes in the financial system's regulations was the Gramm-Leach- Bliley Act, which was enacted in US in the year 1999.... Similarly, in Australia the Financial Management and Accountability Act (FMA Act) was implemented in the year 1997 to ensure deregulation in the financial system of various industrial sectors....
3 Pages (750 words) Essay

Critically Contemporary International Approaches

In a recent affair, the European Commission (EC) has denoted the significant role of consumer credit in the growth of national economy and also the well being of the consumers and thus, it is seeking to adopt the credit regulation across the country4.... World Bank, financial Stability Board) to Consumer Credit Regulation Table of Contents Introduction 3 Defining Consumer Credit Regulation 5 Literature Study of Contemporary International Approach 7 World Bank 10 financial Stability Board 13 Critical Evaluation 16 Great Britain: Parliament: House of Lords: European Union Committee, Consumer Credit in the European Union: Harmonisation and Consumer Protection; 36th Report of Session 2005-06 (The Stationery Office, 2006 pp....
16 Pages (4000 words) Essay

History of Financial Regulatory System in Australia and Singapore

The main objectives of the financial regulatory system are to maintain market confidence in the given financial system; to create public awareness of the financial system; to protect the consumers and to minimize financial crime.... It not only checks the inflation but also brings transparency in the financial system, including the activities of hedge funds.... It is a known fact that the financial system structures changes continually in response to financial innovations and to changes in both the economic environment and the regulatory framework....
11 Pages (2750 words) Essay

Financial Regulation in the Middle East

However, whether or not these trajectories will continue in the UAE and Saudi Arabia will depend on the transparency and strength of the financial services framework in these two Middle Eastern destinations.... In other words, regulating the financial services industry in the UAE and Saudi Arabia is important for the economic growth and development in the Middle East.... … These principles and norms relate to the Islamic commercial partnership laws, inheritance laws, the waqf constructs2 and Islam's legal system's preference for “juristic The United Arab Emirates (UAE) is poised to establish itself as a main regional financial services center....
60 Pages (15000 words) Essay

Economic Liberalism

According to Friedman, a capitalist economic system promotes freedom both directly and indirectly.... Capitalist economies play a crucial role in the separation of political power and economic power.... This essay talks about economics and politics which have an intimate connection though they are in different systems which is does not support the existing of both of them side by side....
5 Pages (1250 words) Essay

The Effects of Bank Regulations, Competition, and Financial Reforms on Banks Performance

This study discussed the importance of making use of banking and financial reforms and regulations in terms allowing small-scale banks become competitive enough to face the financial challenges associated with the local and international banking competition.... hellip; This paper tells that in relation to the global financial crisis, there is a strong need for central banks to maximize the use of its banking and financial regulation and reforms....
38 Pages (9500 words) Research Paper

Public Policy Issues - Need For Regulation in the UK Financial Institutions

he study gives an analysis of the public policy issue of regulation of the financial institutions in the private sector.... the role of public policy makers, which is most of the time the government institutions or their representatives comes here.... The public policy in many forms and through various means can regulate or deregulate the financial institutions in the private sector that include several measures and techniques other than the monetary policy, central bank regulation and the Securities and Exchange Commission....
15 Pages (3750 words) Article

Financial Institutions and Regulation of the Republic of China

the financial institutions for both countries, for instance, consist of banks and trust companies.... Aberbach, Dollar, and Sokoloff reveal that the financial institutions of Taiwan consist of the Central Bank of China, local branches of foreign banks, domestic commercial banks, medium and small business banks, investment and trust companies, credit cooperatives, insurance companies and the postal savings system (97).... The paper "financial Institutions and Regulation of the Republic of China" states that both the US and Taiwan share a lot in common with regard to financial institutions and regulations....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us