Regulatory Frameworks in International Banking

Regulatory frameworks in international banking are sets of rules and guidelines that govern how banks operate across different countries. They ensure that banks maintain financial stability, protect consumers, and prevent illegal activities like money laundering. Key components include capital requirements, risk management standards, and compliance with local laws. Organizations like the Basel Committee set international standards, while individual countries implement their own regulations. This system helps create a safer banking environment globally, fostering trust in the financial system and reducing the risk of economic crises.