StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Regulatory Measures Pertaining to the Banking Industry, in Light of the 2008 Financial Crisis - Dissertation Example

Cite this document
Summary
This paper "The Regulatory Measures Pertaining to the Banking Industry, in Light of the 2008 Financial Crisis" is aimed at examining the apparently contradictory roles of bank regulation, as a means of enhancing economic activity and growth, and as a means to impose risk control, crisis prevention. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful
The Regulatory Measures Pertaining to the Banking Industry, in Light of the 2008 Financial Crisis
Read Text Preview

Extract of sample "The Regulatory Measures Pertaining to the Banking Industry, in Light of the 2008 Financial Crisis"

Download file to see previous pages

The Basel Committee on Bank Supervision has proposed a set of new regulations, primarily aimed at improving capital adequacy and quality to increase the resilience of the banking industry, and to adopt a set of liquidity measures and controls to stem the accumulation of risk that had caused the last crisis. The proposals were consulted with the bank and financial institutions as well as other interested parties in the finance industry, but despite the clamour for tighter regulations, the proposals were generally poorly received.

This study determined that the reason for this lies in the proposals’ tendency to micro-manage, to emphasize quantity at the expense of quality, to adopt general standards for all banks indiscriminately despite their fundamental differences, to introduce distortions that create disinformation, and to model the proposed standards after severe stress conditions not even experienced during the crisis. The results are expected to be greater cost-inefficiency, higher concentration risk, and poorer delivery of services by way of financial intermediation.

Chapter 1 introduces the research and the context in which it is conceived, its main research question and the objectives it sought to answer in order to arrive at a conclusion responsive to the research question; as well as the manner it carried out this inquiry. It also explains the importance of conducting research on the topic, and the significance of the conclusion to be arrived at. The subprime mortgage crisis, strictly speaking, did not originate from the financial markets, but from the housing sector.

If anything, the ultimate cause is traceable to faulty public policy on the manner of subsidizing housing for the lower-income segments (Wachter, Pavlov & Pozsar, 2008). Logically, it should have affected the defaulting borrowers, the companies that enabled the mortgages, Fannie Mae and Freddie Mac, and the government that has given its guarantee, whether implicit or explicit.  

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Regulatory Measures Pertaining to the Banking Industry, in Light Dissertation - 1, n.d.)
The Regulatory Measures Pertaining to the Banking Industry, in Light Dissertation - 1. Retrieved from https://studentshare.org/finance-accounting/1566019-the-regulatory-measures-and-reportorial-standards-pertaining-to-the-banking-and-financial-services-industry-in-light-of-the-subprime-crisis-and-credit-crunch-of-2007-2008-mohammed
(The Regulatory Measures Pertaining to the Banking Industry, in Light Dissertation - 1)
The Regulatory Measures Pertaining to the Banking Industry, in Light Dissertation - 1. https://studentshare.org/finance-accounting/1566019-the-regulatory-measures-and-reportorial-standards-pertaining-to-the-banking-and-financial-services-industry-in-light-of-the-subprime-crisis-and-credit-crunch-of-2007-2008-mohammed.
“The Regulatory Measures Pertaining to the Banking Industry, in Light Dissertation - 1”, n.d. https://studentshare.org/finance-accounting/1566019-the-regulatory-measures-and-reportorial-standards-pertaining-to-the-banking-and-financial-services-industry-in-light-of-the-subprime-crisis-and-credit-crunch-of-2007-2008-mohammed.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Regulatory Measures Pertaining to the Banking Industry, in Light of the 2008 Financial Crisis

Systemic Risk and SIFI and Global Economic Crisis

However, the banking tighter regulation in U.... Likewise, the subprime mortgage crisis occurred in the 2007 -2008 started with U.... In between 1992 to 2002, there were about eight regional / global economic crisis happened in Europe, Asia and U.... Hence, it is essential to structure the portfolio to be fine-tuned methodologically so that the rigorousness of varying macro-economic crisis is minimised.... 's financial and banking sector....
6 Pages (1500 words) Essay

Reactions to the Financial Crisis Including the Changes to the EU Regulatory Process

in light of the financial crisis of 2007-2009, the subsequent sections will address the financial regulatory responses carried out by the European Union as well as changes to the EU regulatory process for financial services.... The financial crisis that rocked the European Union from 2007-2009 affected the economies largely because the mega financial institutions within Europe were operating in a similar business model to that of the United States prior to the crisis....
6 Pages (1500 words) Essay

The Current Economic Crisis and Risk Management

To facilitate this in a secured and manageable manner, the banks & financial institutions used the mechanism of "Securitization" that essentially is the mechanism of distributing the risk of the lending to the investors outside the banking system through a process.... The crisis is thus perceived to have occurred as the result of exposure to Market Risks due to such risk transfer mechanisms (Banks normally are never exposed to market risks because they reply on internal systems in managing the credits) that caused many loopholes in the Credit Risk Management in management of lending to Sub-Prime customers....
19 Pages (4750 words) Essay

International Financial Institutions' Role in Global Market Governance

Transparency needs to standardize all of the regulatory processes through which financial information is prepared for the global investor.... A general consensus has been hammered out regarding the… Transparency is the linchpin of the global financial architecture which seeks to survive the inherent volatility of global financial markets. The prevailing distortions of information within cial markets are the key to explaining the large influx of foreign capital into emerging markets as well as its rapid departure during times of crisis....
7 Pages (1750 words) Coursework

Development in banking and finance

The increasing financial crisis was aggravated by a decline in demand; hence government had to enhance spending so as to raise the demand.... Global economy was booming when the sub prime crisis took place in US in early… According to the market experts in the year 2007 many leading banks in US and Europe were on the verge of collapse due to the accumulation of high value of mortgage backed securities.... The financial system is often considered as the backbone of a country's economy, hence economic growth of the nation is extremely dependent on the fundamental structure of its financial system....
18 Pages (4500 words) Essay

The main EU regulatory to the financial crisis

This essay "The main EU regulatory to the financial crisis" considers the financial crisis of 2007-2009, the subsequent sections address the financial regulatory responses carried out by the European Union as well as changes to the EU regulatory process for financial services.... hellip; The financial crisis that rocked the European Union from 2007-2009 affected the economies largely because the mega financial institutions within Europe were operating in a similar business model to that of the United States prior to the crisis....
7 Pages (1750 words) Essay

Who Was to Blame for the Banking Crisis

the banking industry has seen many fiscal crises in the past, the notable one of them being the one that started in the 1930.... Questions pertaining to the liquidity of banks, a fall in the availability of... Banking industry suffered great loss but above all the things, the relation it had with its investors suffered greatly and After the Great Depression of 1930 the world economy faced a dangerous financial crisis.... The Global financial crisis initiated in July 2007 with the credit crunch when US investors lost confidence in the investment of mortgage property....
10 Pages (2500 words) Essay

Financial Analysis As The Stability Of The Business

Section C found that the global financial crisis was caused by a mix of financial and governmental failures.... The paper "financial Analysis As The Stability Of The Business" describes what financial analysis comprises of various tools and techniques that include ratio analysis, project finance, cash flow analysis, capital budgeting and such other measures.... In most organizations, budgets play an important role in decision-making and planning for the coming financial period....
11 Pages (2750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us