The Beginners Guide To Finances (From Step 1)
Due to the market calamities facing businesses that are in the financial institutions, there is need to normalize the financial system. Although there are some reliable financial institutions out there, there are some institutions that are harming the financial sector. In this regard, every business out there offering financial services is required to stick to the financial laws that are laid out by national and international financial regulators like the FINRA and the FSA. In this article, we will discuss some of the reasons why the financial regulators implement financial laws.
Definition of Financial Laws
Finance law is a framework that lays out all the rules and regulation governing the financial market.
Importance of Having Financial Laws Implemented
Encouraging efficiency within the financial market is one of the reasons why financial laws are implemented. Effectiveness has been one of the key qualities that financial systems embrace for them to be successful. Actually, it encourages healthy competition within the financial market.
Another reason why financial laws are enforced is to eradicate financial institutions that are legging behind in providing financial services. If one bank under-performs, the whole economy is affected by the tidal waves causing the whole financial system to destabilize.
Financial laws are enforced to protect the people who are seeking financial services against financial information irregularity. When seeking financial services, clients should know everything about their finances. For example, if a client decides to invest in the stock market, he or she should be offered the right stock prices by the financial institutions so that they can evaluate if that is the right time to invest in stock market or not. Apart from that, they need to know about bank charges and interest on loans as well as their withdrawal limits.
In this regard, there are so many finance law researchers who have dedicated their time to research on financial needs and business operations. Chris Brummer is one of the professors who has dedicated his time in the financial field. He lectures about the private and international law, finance and global governance as well as international trade. One of his primary objectives is to educate the public about how bank and finance laws works and how they impact the reliability and soundness of the global financial market. As a matter of fact, Chris brummer says that each of the primary strands of international financial law- whether it is trade, finance or international monetary law- often impact one another. Chris Brummer also elaborates how a country conducts its financial regulation determines how monetary policy is devised.