To cope with the trend of forming more diversified financial firms, we need more disclosure of information to the public on the true condition of financial institutions and we also need more international regulatory cooperation (known as harmonization) to prevent global contagion and panics by investors and public at large. We need to use recent technological advances to improve monitoring and warning systems so that regulators can spot troubled financial firms earlier and have a chance to quickly head off service problems.

Question

Quizplus · Accepted Answer

The statement accurately reflects the need for increased transparency, international regulatory cooperation, and the use of technology to monitor financial institutions more effectively. This approach helps in managing risks associated with the diversification of financial firms and in preventing global financial crises by enabling early detection and intervention.

To Cope with the Trend of Forming More Diversified Financial