BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one is not the most common objective of Banking regulations?
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Systematic Risk Reduction
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Credit Allocation
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Prudential Objectives
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Market Discipline
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Explanation:
Detailed explanation-1: -Bank regulation is the process of setting and enforcing rules for banks and other financial institutions. The main purpose of bank regulation is to protect consumers, ensure the stability of the financial system, and prevent crime.
Detailed explanation-2: -The major provisions are such as Payment of Commission, Brokerage, Prohibition of Trading, Capital Structure, Non-Banking Assets, Minimum Capital and reserves, etc.
Detailed explanation-3: -Prohibition of non-banking companies from accepting deposits repayable on demand. Prohibition of trading to eliminate non-banking risks. Prescription of minimum capital standards. Limiting the payments of dividends.
There is 1 question to complete.