Banks are critical to the world economy as they serve as intermediaries between depositors and borrowers. They are also essential to the global payments network because they provide capital required for governments, corporations and individuals to support trade, economic growth and standards of living. Due to their importance to the global economy, the safety and soundness of these institutions have received much attention from both regulators and the public after the last financial crisis. As a result, banks have been heavily impacted by increased regulations and a higher degree of oversight designed to reduce credit, market, liquidity and solvency risk exposure for not just individual banks but also for risks to the global economy.
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