Economics Financial Regulation Study Cards

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Financial Regulation

The process of creating and enforcing rules and regulations to ensure the stability and integrity of the financial system.

Regulatory Agencies

Government organizations responsible for overseeing and enforcing financial regulations, such as the Securities and Exchange Commission (SEC) and the Federal Reserve.

Banking Regulations

Rules and regulations that govern the operations and activities of banks, including capital requirements, lending practices, and consumer protection.

Securities Regulations

Laws and regulations that govern the issuance and trading of securities, such as stocks and bonds, to protect investors and ensure fair and transparent markets.

Insurance Regulations

Rules and regulations that govern the insurance industry, including licensing requirements, solvency standards, and consumer protection.

Consumer Protection

Measures and regulations designed to protect consumers from unfair or deceptive practices by financial institutions, such as predatory lending or misleading advertising.

International Financial Regulation

Rules and regulations that govern financial activities and transactions across national borders, aiming to promote stability and cooperation in the global financial system.

Financial Crisis and Regulation

The role of financial regulation in preventing and mitigating financial crises, such as the 2008 global financial crisis, through measures like increased oversight and risk management.

Ethics in Financial Regulation

The ethical considerations and responsibilities of regulators and financial institutions in ensuring fair and ethical practices in the financial industry.

Regulatory Compliance

The process of adhering to and following the rules and regulations set forth by regulatory agencies to ensure legal and ethical conduct in the financial industry.

Financial Stability

The state of a financial system or institution being able to withstand shocks and disruptions, achieved through effective regulation and risk management.

Risk Management

The process of identifying, assessing, and mitigating risks in order to protect financial institutions and the overall stability of the financial system.

Compliance Officer

An individual or team responsible for ensuring that a financial institution complies with all applicable laws, regulations, and internal policies.

Capital Adequacy

The measure of a financial institution's ability to absorb losses and meet its financial obligations, typically assessed through capital adequacy ratios.

Market Manipulation

Illegal activities that distort the normal functioning of financial markets, such as insider trading or price manipulation, regulated to maintain market integrity.

Systemic Risk

The risk of a widespread disruption or collapse of the financial system, often caused by interconnectedness and interdependencies among financial institutions.

Dodd-Frank Act

A U.S. law enacted in response to the 2008 financial crisis, aimed at improving financial regulation and consumer protection, and reducing systemic risk.

Basel III

A set of international banking regulations developed by the Basel Committee on Banking Supervision, focusing on capital adequacy, liquidity, and risk management.

Insider Trading

The illegal practice of trading stocks or other securities based on non-public information, regulated to ensure fair and transparent markets.

Anti-Money Laundering (AML)

Measures and regulations aimed at preventing the use of financial systems for money laundering and terrorist financing activities.

Know Your Customer (KYC)

The process of verifying the identity and assessing the risk of customers to prevent money laundering, fraud, and other illicit activities.

Sustainable Finance

The integration of environmental, social, and governance (ESG) factors into financial decision-making and investment practices, regulated to promote sustainable development.

Financial Technology (Fintech)

The use of technology and innovation to deliver financial services, regulated to ensure consumer protection and maintain financial stability.

Cybersecurity

Measures and regulations aimed at protecting financial institutions and their customers from cyber threats and attacks, such as data breaches or hacking.

Whistleblower

An individual who exposes wrongdoing or illegal activities within an organization, often protected by laws and regulations to encourage reporting of misconduct.

Enforcement Actions

Legal actions taken by regulatory agencies against individuals or financial institutions for violations of financial regulations, aiming to deter misconduct and ensure compliance.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, regulated to ensure accountability and protect shareholders' interests.

Financial Reporting

The process of preparing and presenting financial statements and reports, regulated to ensure accuracy, transparency, and comparability of financial information.

Audit

An independent examination of financial statements and records to assess their accuracy and compliance with applicable laws and regulations.

Market Surveillance

The monitoring and oversight of financial markets to detect and prevent manipulative or fraudulent activities, ensuring fair and orderly markets.

Credit Rating Agencies

Independent organizations that assess the creditworthiness of companies and governments, regulated to ensure accuracy and transparency in credit ratings.

Financial Education

Efforts and initiatives aimed at improving individuals' understanding of financial concepts and products, regulated to promote financial literacy and consumer protection.

Insolvency

The state of being unable to pay debts when they are due, regulated to protect creditors' rights and ensure orderly resolution of financial distress.

Market Conduct

The behavior and practices of financial institutions in their interactions with customers and other market participants, regulated to ensure fair and ethical conduct.

Financial Inclusion

Efforts to provide access to affordable financial services to underserved and marginalized populations, regulated to promote inclusive and sustainable economic growth.

Systemically Important Financial Institutions (SIFIs)

Financial institutions whose failure or distress could pose a significant risk to the stability of the financial system, subject to enhanced regulation and oversight.

Market Liquidity

The ability to buy or sell financial assets quickly and at a fair price, regulated to ensure smooth functioning and stability of financial markets.

Financial Innovation

The development and implementation of new financial products, services, or technologies, regulated to balance innovation with risk management and consumer protection.

Systemic Risk Assessment

The evaluation and measurement of potential risks to the stability of the financial system, informing regulatory actions and policies to mitigate systemic risk.

Resolution Framework

The set of rules and procedures for resolving the failure or distress of financial institutions in an orderly manner, minimizing the impact on the financial system and economy.

Financial Stability Board (FSB)

An international body that monitors and makes recommendations about the global financial system, promoting stability and coordinating regulatory reforms.

Stress Testing

The assessment of a financial institution's resilience to adverse economic or financial conditions, helping identify potential vulnerabilities and inform risk management.

Market Risk

The risk of losses arising from changes in market prices or conditions, regulated to ensure financial institutions have adequate risk management measures in place.

Operational Risk

The risk of losses resulting from inadequate or failed internal processes, people, or systems, regulated to ensure operational resilience and risk mitigation.

Conduct Risk

The risk of misconduct or unethical behavior by financial institutions, regulated to protect consumers and maintain trust in the financial system.

Capital Markets

Financial markets where long-term securities such as stocks and bonds are bought and sold, regulated to ensure fair and efficient capital allocation.

Derivatives

Financial contracts whose value is derived from an underlying asset or benchmark, regulated to manage risk and ensure market integrity.

Hedge Funds

Private investment funds that pool capital from accredited investors and employ various investment strategies, regulated to protect investors and maintain market stability.

Private Equity

Investments in privately-held companies or assets, typically made by institutional investors or high-net-worth individuals, regulated to ensure investor protection and market transparency.

Crowdfunding

The practice of funding a project or venture by raising small amounts of money from a large number of people, regulated to protect investors and promote capital formation.

High-Frequency Trading (HFT)

The use of advanced technology and algorithms to execute trades at high speeds, regulated to ensure fair and orderly markets and prevent market manipulation.

Financial Crimes

Illegal activities in the financial sector, such as money laundering, fraud, or terrorist financing, regulated to prevent and detect financial crimes.

Market Abuse

Illegal activities that distort the normal functioning of financial markets, such as insider trading or market manipulation, regulated to maintain market integrity.

Regulatory Sandbox

A controlled environment where fintech startups can test innovative products or services under regulatory supervision, promoting innovation while managing risks.

Regulatory Reporting

The process of providing regulatory authorities with information and data on financial activities, ensuring compliance with reporting requirements and facilitating supervision.

Financial Intelligence Unit (FIU)

Government agencies responsible for collecting, analyzing, and disseminating financial intelligence to combat money laundering, terrorist financing, and other financial crimes.

Regulatory Technology (RegTech)

The use of technology and automation to facilitate compliance with regulatory requirements, improving efficiency and effectiveness of regulatory processes.

Financial Ombudsman

An independent dispute resolution service for consumers and small businesses to resolve complaints against financial institutions, ensuring fair treatment and access to justice.