AN ANALYSIS OF THE IMPACT OF FINANCIAL REGULATIONS ON THE STABILITY OF BANKING

Abstract

The stability of the banking sector is a critical component of a healthy economy, as banks play a fundamental role in financial intermediation and credit provision. Financial regulations are essential tools used by policymakers to ensure the stability and soundness of the banking system. These regulations set out rules and standards that banks must adhere to, to mitigate risks, protect depositors, and prevent systemic crises. This thesis seeks to delve into the impact of financial regulations on the stability of banking, focusing on how these regulations influence risk-taking behavior, capital adequacy, and resilience of banks in the face of economic shocks.