How are finance companies regulated? Do you think there is enough oversight of t
ID: 2619505 • Letter: H
Question
How are finance companies regulated? Do you think there is enough oversight of these type of financial institutions? 2. Give an example of a real live finance company. What purpose does this company serve meaning who is their target customer and what do they offer to the customer in terms of product and services? How are finance companies regulated? Do you think there is enough oversight of these type of financial institutions? 2. Give an example of a real live finance company. What purpose does this company serve meaning who is their target customer and what do they offer to the customer in terms of product and services?Explanation / Answer
How are financial companies regulated?
Certain financial institutions are so central to the American financial system that their failure could cause damage to the economy. They are referred to as “systematically important financial institutions” (SIFI’s). The Dodd – Frank act is a comprehensive reform legislation signed during 2010 requires financial regulators belonging to financial stability oversight council (FSOC) to name those financial institutions that are systematically important. Those institutions are required to operate with great safety margin.
Still there is some kind of governance required on these financial institutions to ensure that there is proper governance & smooth running of activities.
Example of real life finance company:
HDFC: The purpose of HDFC bank is to provide banking services to target retail & wholesale segments & to achieve healthy growth in profitability consistent with bank’s risk appetite. The bank is committed to maintain high level of ethical standards, professional integrity, corporate governance & regulatory compliance. The other objectives are operational excellence, customer focus, product leadership, people & sustainability.
Products & services of HDFC bank:
Credit cards, consumer banking, corporate banking, finance & insurance, investment banking, mortgage loans, private banking, private equity, wealth management etc.
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