Why are not more resources allocated to the prudential regulation of the banking sector, which is plainly necessary to prevent financial crises?
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Why are not more resources allocated to the prudential regulation of the banking sector, which is plainly necessary to prevent financial crises?
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- Why do we call a bank a financial intermediary?In what way might consumer protection regulationsnegatively affect a financial intermediary’s profits?Can you think of a positive effect of such regulationson profits?Why are financial intermediaries the most heavily regulated businesses in the economy? Explain why stock market is an important factor in business investment decisions? What is inflation? What explains inflation? If there is a recession, will it be more difficult to find a job when you graduate? Explain. What are the six types of regulations the government employs in an attempt to ensure the soundness of our financial intermediaries? Explain. Explain the difference between debt and equity markets. primary and secondary markets, exchange and over the counter markets and money and capital markets. What is the difference between foreign bond and a Eurobond? Which institutions are subject to Federal Deposit Insurance corporation (FDIC) regulations, and what is the nature of the regulations? What are the reasons for high transaction costs to exist in a barter economy? What separates the assets included in M1 from the assets included in M2? Does it matter what definition of money policy…
- In the absence of limits on the behavior of large intermediaries, how might the perception of institutions being "too-big-to-fail" lead to increased concentration in the banking industry? The safety net alleviates the too-big-to-fail problem, thus increasing concentration in the banking industry. The safety net creates moral hazard problems for big banks by encouraging extremely risky behavior. This puts small banks at a competitive disadvantage, driving them out of the market and leading to an increase in concentration. The safety net encourages larger banks to split into several smaller institutions, thus increasing the concentration in the banking industry. The safety net encourages more banks to enter the market, thus increasing concentration in the industry.Why is it that bank deposit secrecy became a highly sensitive issue with respect to the implementation of the money laundering actexplain the functions performed by financial intermediaries and how they can promote economic efficiency in financial markets.
- What has happened to the profitability of financial firms in the US economy in recent decades? Why have they been able to increase their profits? Is this a good thing for the US economy as a whole?Banking regulation suffers from the principal-agent problem. Describe how this problem relates to regulators and politicians.What can emerging market countries do to strengthenprudential regulation and supervision of their bankingsystems? How might these steps help avoid futurefinancial crises?
- Describe the behavioral structure in the Banking sector in Bangladesh?What is the main purpose of financial regulation? What kind of instruments may a government use to protect the economy and country from financial panic?What short and long term effects did deregulation of the banking industry from the 1980s through the early 2000s have on bank consumer lending programs?
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