Principle of Impartiality in the Regulation and Supervision of the Financial Sector
1- Importance of the Financial Sector The financial sector occupies a unique position within modern economies because it performs the essential function of financial intermediation, channelling funds from surplus units, such as households and institutional investors, to deficit units, including firms, entrepreneurs, and governments. Through this process, financial institutions facilitate investment, economic growth, job creation, and innovation while supporting the efficient allocation of resources across the economy. Banks and other financial intermediaries also provide critical services such as payment systems, liquidity transformation, maturity transformation, and risk management, making them indispensable to the functioning of both financial markets and the real economy. Unlike many other sectors, however, the effectiveness of the financial system depends fundamentally on trust and confidence. Depositors place their savings in banks with the expectation that their funds will remain...