Financial regulation refers to the set of laws, rules, and guidelines established by governmental bodies and regulatory agencies to oversee and maintain the stability, integrity, and transparency of financial markets and institutions. Its primary objectives include protecting consumers, ensuring the soundness of financial entities, promoting fair and efficient markets, preventing financial crimes, and reducing systemic risk. Financial regulation encompasses various sectors, including banking, securities, insurance, and investment, and may involve requirements related to capital reserves, reporting, auditing practices, and ethical conduct. Through enforcement and compliance mechanisms, financial regulation aims to foster trust in the financial system and facilitate economic growth while safeguarding against potential crises.
BaFin highlights six emerging risks that may disrupt markets this year. Recent trends indicate potential volatility following a tech market surge. Chinese AI startup Deepseek's low-cost strategies challenge existing market…