Regulations are used by regulators as a viable means to mitigate risk in the banking sector. However, over time, many arguments have been put forth in favor of regulations and against it. Some of the most pertinent arguments include all of the following EXCEPT? a. Regulation is essential to effectively managing the relationship between risk and return, although it can reduce the opportunities available to financial institutions to increase shareholders wealth. b. Regulators seek to create a safe banking environment to ensure the stability of the global financial system. However, in doing so, it reduces the competitiveness of financial institutions, and inevitably their ability to effectively compete with other banks. c. Regulators seek to mitigate any negative impacts that can result in failures of the global financial system, while at the same time, discourage undertaking risky activities by financial institutions. d. The underlying objective of regulators is to control risk. One of the ways it does this is by ensuring that financial institutions insure risk. By doing so, it provides a safety net for depositors and protects the banking system from failures.
Regulations are used by regulators as a viable means to mitigate risk in the banking sector. However, over time, many arguments have been put forth in favor of regulations and against it. Some of the most pertinent arguments include all of the following EXCEPT?
Regulation is essential to effectively managing the relationship between risk and return, although it can reduce the opportunities available to financial institutions to increase shareholders wealth.
Regulators seek to create a safe banking environment to ensure the stability of the global financial system. However, in doing so, it reduces the competitiveness of financial institutions, and inevitably their ability to effectively compete with other banks.
Regulators seek to mitigate any negative impacts that can result in failures of the global financial system, while at the same time, discourage undertaking risky activities by financial institutions.
The underlying objective of regulators is to control risk. One of the ways it does this is by ensuring that financial institutions insure risk. By doing so, it provides a safety net for depositors and protects the banking system from failures.
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