Economics · Financial Regulation
What primary purpose would 'positive incentives' serve if integrated into the banking regulatory system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To restrict operational communication between financial institutions and supervisory bodies.
- 2To make compliance rules increasingly complex and difficult to execute.
- 3To align the business objectives of banks with broader macroeconomic stability.✓
- 4To revive micro-management practices focusing on minute procedural details.
Correct answer
To align the business objectives of banks with broader macroeconomic stability.
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