Reply To: What are the key laws and regulations that govern trade finance?

[Dheerav Boj]

The legal and regulatory framework for bank-mediated finance is multi-faceted and can be complex. In most countries, there are three main types of regulatory measures that govern banking:

Systemic regulations, also known as macro-prudential regulations, cover a range of measures aimed at identifying and reducing risks to the overall stability of the financial system. Prudential regulations, also known as micro-prudential regulations, cover measures primarily focused on maintaining the stability of individual financial institutions.

Non-prudential regulations, which include all other financial regulations that are implemented regardless of the financial health of an institution or the integrity of the system.