Question

• Discuss three reasons why it is necessary to regulate banks
• Provide and evaluate three reasons why some banks have failed within your jurisdiction.

The essay should be between 1000 -1200 words

Answer 1

It is necessary to regulate banks to avoid financial irregulaties in accounting statements, to avoid discrepancies in implementation of policies, to audit any malpractices and take action significantly on banks which can lead to economic losses.

Banks have failed massively and multiple times despite jurisdiction due to unstructured database management, financial frauds by leadership, cartelisation by investors, lack of risk management framework and absence of Sarbanes Oxley Act execution.

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