Financial regulatory framework

A financial regulatory framework consists of rules and authorities that oversee banks, investment firms, and financial markets to ensure stability, transparency, and fairness. These regulations prevent fraud, protect consumers, and reduce risks that could cause economic crises. Regulatory agencies enforce laws, monitor financial activities, and set standards for operation. This system helps maintain confidence in the financial system, encouraging responsible behavior and safeguarding the economy from systemic failures. In essence, it's a structured set of guidelines and oversight mechanisms designed to keep financial markets functioning securely and fairly.