The Financial Crises: Causes and Consequences and the South African Response
The financial sector is viewed by the free market as the foundation of any society. The financial sector acts as an environment for a free, dynamic and competitive economy. The stability of any society relies upon that society’s financial sector’s ability to perform its duties. The duties of the financial sector include, but are not limited to, mobilising the flow of funds between investors and borrowers, acting as a mechanism for companies to sell securities and finance expansion, and encouraging systematic risk-taking and rewarding profitable investment. The foundation of the sector is financial regulation.