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Regulating banks is challenging due to their complex and interconnected nature, which can lead to systemic risks that are difficult to predict. The globalized financial system means that regulations must reconcile differing national laws and practices, complicating enforcement. Additionally, the rapid evolution of financial technologies and products often outpaces regulatory frameworks, making it hard for regulators to keep up. Lastly, the banking sector's lobbying power can influence regulatory outcomes, sometimes prioritizing industry interests over consumer protection and financial stability.

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1w ago

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