Banks are regulated by e.g. Basel-II or -III-rules. a) Please name the reason why the Basel accords bear the name of the Swiss town Basel.  b) Please explain one aspect/ element of Basel II-equity rules. (reason(s) for rule; measurement/ figure; weakness; enhancement by Basel-III-regulation) Banks have to ensure that they are able to meeting all clients’ withdrawals by “holding liquidity”. c) Please explain the regulation of liquidity by Basel rules. (Basel-II liquidity regulation, event for strict(er) rules, enhancement by Basel-III-rules, measurement of liquidity situation of banks, effects on banks’ profit situation).

Q: Which of the Basel Accords introduced three pillars with a focus on the banking book? Select one: a.…

A: The three-pillar framework with a significant focus on the banking book was introduced in the Basel…

Q: What is your reaction to the accusation that the Islamic finance industry is generating…

A: Islamic finance industry has been growing in leaps and bounds and this has attracted attention from…

Q: a. Capital Adequacy is at the heart of BASEL II & II accords and Tier 1 & Tier 2 capital plays a…

A: Capital adequacy ratio is defined as the measurement of an availability of capital of the banks,…

Q: Which of the following is a liability of the Bank of Canada? a) Government bonds b) Canadian…

A: The central bank buys foreign currencies from foreign currency market. It creates a liability.

Q: Which of the following is NOT a characteristics of Eurobonds? a. They are traded on a self-regulated…

A: Eurobonds are those bonds that are issued and denominated in a different currency than the currency…

Q: Securities that are registered at the U.S. Federal level are not subject to U.S. state governments…

A: There are various laws governing securities

Q: 15. In making loans to a single customer, commercial banks are not restricted to a maximum…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Explain the difference between commutative contract and non-commutative contract. Why Insurance is…

A: A commutative contract is a type of agreement between two parties where the exchange of goods,…

Q: Explain why Basel Rules require a maturity adjustment for corporate loans but not retail loans.

A: Retail loan is the loan which is provided through commercial bank or the certified financial…

Q: Which would be the appropriate section in the codification for the following:  "Borrowings…

A: The Financial Accounting Standards Board (FASB) is an accounting body whose main purpose is to set,…

Q: The main function of the IMF is to: O Help resolve balance of payments problems of member countries.…

A: Following are the main functions are IMF: Providing stability for exchange. Economy stability…

Q: 13. Which of the following powers or tools of Federal Reserve monetary policy has the greatest…

A: The  Federal Reserve controls the four tools of monetary policy are (i) open market operations, (ii)…

Q: In what ways are the Bank of Japan and the Bank of England similar to the FederalReserve? In what…

A: In what ways are the Bank of Japan and the Bank of England similar to the FederalReserve? The Bank…

Q: The London Interbank Offered Rate (LIBOR) is published under the auspices of the British Bankers…

A: LIBOR (London Interbank Offered Rate) is a benchmark interest rate. This is the rate at which big…

Q: Which of the following statements is true about banks? (Choose an answer from the list below; only…

A: Financial Institutions A company that is engaged in financial transactions is known as a financial…

Q: Only one statement is 100% correct. Which one? → A. State agencies charter and regulate national…

A: The federal reserve system is a system which is always focusing upon central banking operations…

Q: The interest rate at which chartered banks can borrow from the Bank of Canada is the 1) preferred…

A: The interest rate is the cost of borrowing money or the return on investment for lending money.

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.