Global banking regulations revamped to prevent future financial crises.
Bank regulation has changed significantly after the 2007-8 global financial crisis. Governments use safety nets and regulations to control and support the banking industry. Regulation is important to prevent major failures and manage risks faced by banks. Elements of the safety net include bank supervision, stress tests, deposit insurance, and capital adequacy. The Basel I, II, and III accords play a role in regulating banks. The chapter also discusses banking recovery and resolution.