Agencies that regulates the financial markets

Economics S.S.S 3 First Term

WEEK 7

Agencies that regulate the financial markets

Performance Objectives

Student should be able to:

1. Identify regulatory agencies.
2. State the aspect of the market regulated by each agency.

Content

Meaning and types of regulatory agencies

Regulatory agencies of financial institutions are agencies set up by the government to regulate the activities of financial markets such as money market, capital market and stock exchange.

Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system. This may be handled by either a government or non- government organization.

Aims of regulation

1. To maintain confidence in the financial system

2.…