Light touch regulation of the ?nancial services sector was encouraged in order to increase liquidity in the economy and spur innovation in ?nancial instruments.

Question

Quizplus · Accepted Answer

This statement is true. Light touch regulation was implemented to encourage growth and innovation in the financial services sector. However, it was also identified as a contributing factor to the 2008 global financial crisis, leading to a reassessment of regulatory policies.

Light Touch Regulation of the ?Nancial Services Sector Was Encouraged