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.
International Trade and Finance encompasses a variety of international rules for trade, conventions that establish standards for companies operating internationally, strict national regulations for international business, and conflicts among and across countries and cultures. The most notable laws in this field include: