Evaluate the Effectiveness of the Regulatory Regime in a Selected Market of Your Choice
In this task I will be evaluating the effectiveness of the regulatory regime in a selected market; I will be doing this by identifying a market or industry in the UK business market and researching on the existing regulatory regime governing that particular market. I will also analyse critically how effective it has been implemented and if it is achieving its purpose. I will also discuss its successes and failures and make recommendations as to how it can be more effective.
The market that I have chosen to use and show the effectiveness of its regulatory regime is the finance industry. For my industry I will be looking at financial banks, I have …show more content…
- GDP growth and spare and capacity- the rate of growth of real national output and the estimated size of the output gap is central to decisions about setting the appropriate level of interest rates. Their main task is to set monetary policy so that demand grows more or less in line with the increase in the country’s potential productivity.
- Trends in global foreign exchange markets – looking at tends in the value of the sterling with the euro as a weaker exchange rate could be seen as a threat to inflation because it raises the prices of imported goods.
- Growth of wages, average earning and unit labour costs- these are considered important points as indicators of demand pull and cost push inflationary pressure. The MPC have to take into consideration if the annual rate of wage inflation reaches above the 5% mark as it might eventually feed through into a rise in consumer prices.
By taking these points and many other factors into consideration the regulatory regime is being implementing effectively and achieving its purpose to its full extent as the Bank has a statutory objective to ‘contribute to protecting and enhancing the stability of the financial systems of the United Kingdom’. The Bank does this through its risk assessment and risk reductions work, market intelligence functions, payments systems oversight and market operations, including, in exceptional circumstances by acting as lender of last resort and resolution work