Regulatory and Supervisory Structures

Abstract

Safe, sound and strong banks provide the underpinnings of a growing economy. In market economies, commercial banks play a critical role in gathering funds from the public and in channelling these funds to their most productive uses. Funds allocation decisions are made not in accordance with an economy-wide plan or credit directives from the government or the central bank, but instead, by a vast number of credit and investment officers, acting independently of each other and responding to market opportunity — basically market signals.