2.4.4 The regulation of the financial system
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Why finance needs regulation

Why finance needs regulation

Flowchart showing losses at a bank leading to a bank run, fire sales, weaker balance sheets, lower lending and lower aggregate demand The financial system channels funds from savers to borrowers through institutions, markets and payment systems. Because banks provide credit and run everyday payments, a banking problem can quickly spread beyond one firm.

2.4.4 The regulation of the financial system Lesson

  1. A Level
  2. /Economics
  3. /2.4.4 The regulation of the financial system