Grace, a Monash student with economics major, reflecting upon the GFC, believes that the market can and should be allowed to look after itself. For her, policymakers should give more freedom to the market participants and refrain from interfering in the banking and financial sector. She also argues that we should encourage innovation in the banking and financial sector by reducing government intervention. Please share your view on the purpose of regulation and explain whether government regulation of banking is necessary. (5 marks)