Financial regulators

 Financial regulation is the process of governing financial institutions and

markets through rules and laws. Financial regulation aims to protect
consumers, investors, and creditors from abusive or fraudulent practices,
promote market stability, and prevent another financial crisis. Financial
regulation can take many forms, including laws, rules, regulations,
guidelines, and supervisory actions.
 Financial regulators are non-government or government agencies
responsible for issuing and enforcing regulations governing financial
institutions and markets. Many financial institutions exist, including banks,
insurance companies, securities firms, and investment funds. Each type of
financial institution is subject to different kinds of regulation.
 Financial regulators are organizations like the Financial Industry Regulatory
Authority or the Securities and Exchange Commission tasked with
implementing and enforcing these rules
 Financial regulators are established to keep an eye on and regulate various
aspects of the financial system to safeguard customers and the economy.

What Role Do Financial Regulators Play

One key aspect of financial regulation is creating and enforcing rules governing
the financial activity. These rules cover various topics, such as lending
standards, consumer protection, investment restrictions, and market
manipulation. Financial regulators also ensure that financial institutions
comply with these rules and enforce penalties for those who don’t.

Financial regulators also play a role in monitoring the overall health of the
financial system. They keep tabs on asset prices, credit availability, and
systemic risk. When necessary, they take action to prevent problems from
spreading or occurring. It can include requiring banks to hold a certain amount
of capital, prohibiting certain activities, and mandating the disclosure of
 information. Financial regulation can also be made internationally through
organizations like the IMF or World Bank.

The Main Regulators of Finical System of Ethiopia

The main regulators of finical system Ethiopia includes

1. The National bank of Ethiopia

NBE is a central bank of that is established by law. The establishment
regulation provided the NBE with purposes and roles. Roles are
functions/powers and duties/responsibilities to be performed by NBE to
achieve its purpose

The roles of NBE in regulating the finical systems includes

 maintaining financial stability and regulating the Ethiopian Payments
System
 regulate and determine the supply and availability of money and credit as
well as the applicable interest rates and other charges;
 take such steps to establish, modernize, conduct, monitor, regulate and
supervise payment, clearing and settlement systems;
 fulfilling its regulatory responsibilities by controlling risks and promoting
efficiencies
 participating in the financial system as banker to the national payment
system of government
 regulating banks and other financial institutions
 set limits on the net foreign exchange position and on the terms and the
amount of external indebtedness of banks and other financial institutions;
 set limits on gold and silver bullion and foreign exchange assets which
banks and authorized dealers can hold;
 formulate and implement exchange rate policy;
 manage and administer the international reserves of Ethiopia;
 establish and manage deposit insurance fund;
  collect data from any person and prepare periodic economic studies, on the
balance of payments, money supply, price forecasts and other relevant
statistical indicators for analysis and for the formulation and determination
of monetary, saving and exchange policies as are useful to Ethiopian
economy;

The Financial Intelligence Center (FIC)

The FIC is the National Centre for the receipt and analysis of suspicious
transaction reports and other information relevant to predicate offences of
Money Laundering/ Terrorist Financing and Proliferation Financing (ML/TF&P) and
to disseminate actionable intelligence to competent authorities

The purpose of the FIC is