5.6.0 This section deals with some issues
surrounding the regulatory environment introduced by government to control the behaviour
of certain financial institutions and agents operating in the capital market. The
principal focus is on the following three areas:
Regulation of the Banking System - this is relevant because of
the roles banks play as purchasers of government debt, as agents engaged in the
distribution of government debt, and because of the importance of the banking system to
Monetary Policy.
Regulation of Other Financial Institutions - this involves
pension funds, the insurance industry, and managers of mutual funds.
Regulation of Securities Markets - this involves regulation of
the standards to be expected firms engaged in the issue and trading of financial
securities.
5.6.1 Regulation of the Banking System - Some relevant
legal issues
 | What are the relevant sources of law? |
| How is access to the banking system regulated - (i.e.) can foreigners own and operate
banks? Can non-financial entities own banks? |
| How can banks participate in the government debt process? |
| Are there prescribed investments for banks? |
| Who is responsible for regulating the banks? |
| What are the policy objectives in this regulatory regime? |
| How does the regulatory agency actually inspect banks and monitor their activity? |
| Which source of law in fact plays the most important role in the regulatory regime
applicable to banks? |
| How stable and predictable is the regulatory regime? Have there been changes in the past
5 years? |
| Can interested parties easily obtain information on the regulatory regime? |
| How effective is the regulation of banks? |
| What is the primary cause of problems in the regulation of banks? Are they caused by a
lack of capacity in the regulatory authority? |
| What are the sources of law? |
| How is access to segments of the financial sector controlled (i.e. can foreigners own
and operate pension funds, insurance companies, mutual funds? Can non-financial
institutions own financial institutions?) |
| How can financial institutions participate in the government debt process? |
| Are there prescribed investments for financial institutions? |
| Who is responsible for regulating these institutions? |
| What are the policy objectives in these regulatory regimes? |
| How does the regulatory authority actually inspect the financial institutions for which
it is responsible and monitor their activities? |
| Which source of law in fact plays the most important role in each of these regulatory
regimes? |
| How stable is the regulatory regime? Have there been any changes in the past 5 years? |
| Can interested parties easily obtain information on the regulatory regimes? |
| How effective is the regulation of financial institutions? |
| What is the primary cause of problems in the regulation of financial institutions? Are
they caused by a lack of capacity in the implementing authority? |
| What are the sources of law? |
| How is access to the securities market controlled? (i.e. can foreigners own and operate
securities firms? Can non-financial institutions participate directly in these markets?) |
| How can investors and investment banks participate in the government debt process? |
| Who is responsible for regulating the securities markets? What role does self regulation
play in the regulatory regime? |
| What are the policy objectives in this regulatory regime? |
| How does the regulatory authority actually monitor the securities markets? |
| Which source of law in fact plays the most important role in the regulatory regime? |
| How stable is the regulatory regime? Have there been any changes in the past 5 years? |
| Can interested parties easily obtain information on the regulatory regime? |
| How effective is the regulatory regime? |
| What is the primary cause of problems in the regulation of the securities markets? Is it
problems in the law or problems in the capacity of the implementing authority? |
| How much information are actors in these markets required to disclose publicly? |
| Does the regulation of the capital markets conform to the best practices in the world? |
