Financial reform refers to changes made to improve the financial system, ensuring it operates more efficiently and fairly. These reforms can include new regulations for banks, adjustments to monetary policy, and measures to enhance transparency in financial markets. The goal is to prevent financial crises and protect consumers from unfair practices. Such reforms often arise in response to economic challenges, like the 2008 financial crisis, which highlighted weaknesses in the system. Policymakers, including government officials and regulatory bodies, work together to create laws and guidelines that promote stability and accountability within the financial sector.