The Purpose and Importance of Financial Regulation in the Banking Sector

The video discusses the purpose and importance of financial regulation, highlighting the various risks in the financial sector, such as credit, market, and liquidity risks. It explains systemic risk and the need for a robust regulatory framework to prevent crises like the 2008 financial crisis, which exposed flaws in the financial system. The video also covers the impact of the crisis on economies, particularly the UK, and the regulatory reforms introduced post-2008 to ensure financial stability and protect consumers.

What are the main roles and functions of regulatory bodies in the financial sector?

How does the traditional banking model create a maturity mismatch?

What are some of the risks involved in the banking sector?

What is systemic risk and why is it significant in the financial sector?

What were some of the flaws exposed by the 2008 financial crisis?

What reforms were introduced in the regulatory structure after the 2008 crisis?

How does financial regulation aim to protect consumers and the economy?