Statutory instruments are secondary legislation that is enacted by the government under the authority of a primary act of parliament. They can be used to regulate a wide range of activities, including the banking industry.
Statutory instruments can have a significant impact on the performance of banks. For example, regulations that require banks to hold more capital or to restrict certain types of lending can increase costs and reduce profitability. However, statutory instruments can also have positive impacts on bank performance, such as by promoting financial stability or by protecting consumers.
The overall impact of statutory instruments on bank performance will depend on a number of factors, including the specific regulations that are enacted, the economic environment, and the competitive landscape.
Statutory instruments can impact bank performance by influencing regulatory compliance, risk management, and operational procedures. They often set rules and requirements that banks must adhere to, affecting their stability, competitiveness, and ability to adapt to changing market conditions.