RBI that is, the Reserve Bank of India, has the right and the responsibility to license banks, manage audits, have regulations over shareholding and voting rights of shareholders, supervise the appointments of the banks and the boards, regulate the operations of the banks, mergers, and liquidations and so on. In the case of insurance companies, policyholders rely on getting claims paid when something goes wrong. Imagine a world without any FSAs to regulate banks – why would banks spend time on compliance? One such example would be the new KYC requirements that the banks are supposed to maintain their customers. Banks provide services that are important for a market‐based economy: They channel money from Basel III is a set of international banking regulations developed by the Bank for International Settlements to promote stability in the international financial system. To concise this vast subject, I would restrict this article only to the view of a banking customer. setTimeout(function() { Currently there are 17 commercial banks in Ethiopia, one state owned and 16 private. As a matter of policy, Democrats advocate more regulations. Banking is a rapidly growing industry in Ethiopia. The benefits of good government rules have been obvious for generations. When a bank fails, it is unable to meet its obligation to depositors or other creditors, which can cause problems for the wider economy. 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The FDIC provides a wealth of resources for consumers, bankers, analysts, and other stakeholders. One of the key purposes of establishing financial regulations is to maintain the integrity of the financial system. Share. From an EU perspective, financial regulation is the main point of reference for the principles and procedures governing the establishment, implementation and control of the EU budget. Banking Regulations are inevitable for all banks worldwide. } Why we think regulation is important Why we think regulation is important . Regulation to prevent bank fraud is seen as important. 1. When a bank fails, it is unable to meet its obligation to depositors or other creditors, which can cause problems for the wider economy. Now, the question arises, why do the banks need to be regulated? Rules and regulations can help keep workers safe and prevent harm for business and industrial practices. 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