Stricter capital regulations such as the RBNZ’s recent increases in capital ratios will ensure that banks are more safe and the financial system is more able to withstand major adverse shocks. Is it true? Please explain. Thanks!

Q: What is the key problem associated with the Fed's lender-of-last-resort role?

A: Lender of last resort is an institution in the financial system. These system will provide the…

Q: re are claims that the central bank caused the recession, and due to them, production has dropped…

A: Central bank are very important in the country and role of central banks have become major factor in…

Q: regulators

A: Banking regulators serve as a guidepost to monitor the activities of banks across the region. They…

Q: Which of the following is NOT usually associated with “financial risk”? a. A rise in the country’s…

A: Financial risk is the possibility of capital loss as a result of shifting market conditions.…

Q: Examine the reasons as to why investment banks achieve high levels profits and why large profits…

A: Investment banks are financial institutions that provide a range of services, including…

Q: f interest means higher levels of loans, and therefore, higher level of investment in real capital…

A: Introduction : In simple words, financial intermediaries refers to the individuals and the entities…

Q: What does 'deleveraging' mean? a) Financial institutions cutting back in lending b) Financial…

A: Leverage shows how much is the debt and how much is the equity and this is very important because…

Q: 1. Suppose that a financial institution has a negative $25 million difference between its assets and…

A: Introduction: Financial institution has negative $25 million meaning financial institution has…

Q: After the global financial crisis, are investors operating in the securities markets more cautious…

A: Securities market is a component of the wider financial market where securities can be bought and…

Q: bt financing is likely to appeal most strongly to organizations that have predictable profits and…

A: In Debt financing there are interest payment to be made each period but there are tax deductions for…

Q: How banks can improve their return on equity and what are its negative externalities.

A: RoE is ubiquitous in banks, serving as both an indicator of overall performance and a means of…

Q: Which of the following is not one of the things that manager can do to reduce the capital ratio…

A: Paying out higher dividends to stockholders.

Q: (b) "Financial innovation sometimes brings great rewards. It can make the financial system more…

A: RELATION BETWEEN INNOVATION AND MANAGING RISK Innovation is the lifeblood of any company, but…

Q: Moral hazard is a barrier to financing global growth because: OPTIONS: if investors have trouble…

A: Moral hazard is a situation which occurs as a result of the lack of accurate information or…

Q: A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its…

A: Risk adjusted capital ratio It is total adjusted capital divided by risk weighted assets. It is used…

Q: How can we raise the capital specification for shadow banks and depository institutions and make…

A: Capital specification is the capital or equity requirements that are to be maintained by the banks.…

Q: The financial crisis of 2008-2009 spawned the concept of "systemic risk." What is meant by this…

A: Systematic risk is an important concept in the world of finance and investments.

Q: M-1 when the economy is expanding than when it is experiencing a recession. Do you agree or…

A: The money multiplier will depend on the proportion of reserves that banks are required to hold by…

Q: Do you think some investors may take advantage of the interest rate reduction, despite economic…

A: Investors deals in various investment options like derivatives instruments that require margin money…

Q: Select all that are true regarding liquidity risk for a bank. O Consumer trust in the bank ensures a…

A: The answer is provided below.

Q: dis finance

A: When it comes to risk management, systematic risk is an essential component that investigates the…

Q: If ABC Bank’s ALCO targets the market value of shareholders’ equity in its interest rate risk…

A: we start by  analysing some aspects:Missing Information: The table lacks information about the…

Q: As a bank manager, you conclude that the bank has a capital shortfall and should decrease the equity…

A: Capital adequacy is the appropriate level of capital (shareholder money) that a bank must possess as…

Q: In recent years, ‘direct lenders’ and ‘shadow banks’ have increasingly provided funding for…

A: The lending agencies are the financial institutions that provide funds to the public, business…

Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.