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5. Since finance companies seemingly operate in the same market as traditional banks, why are they...



5. Since finance companies seemingly operate in the same market as traditional banks, why are they not subject to the same regulations as banks?


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Law and regulaltion are governed by the nature of business the entity is involved.Regulation may not be the same for different type of entity working in same business Say Trading goods. In the similar way the companies are govered by the companies regulation and bank i.e. financial institution are govered by banking regulation.

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