financial liberalization

Financial liberalization refers to the process of removing barriers and restrictions on financial markets and institutions, allowing for more freedom in banking, investment, and capital flows. It typically involves easing controls on interest rates, foreign exchange, and investment rules to encourage competition, efficiency, and economic growth. By opening up financial systems, countries aim to attract foreign investment, improve access to financing, and promote economic development. However, it also requires strong regulation to manage potential risks such as financial volatility or crises that can result from increased market openness.