Reference no: EM132671
QUESTION 1
a) For a local regulator to achieve an effective banking supervisory regime, it should embed some core principles. State these core principles and briefly outline the pre-conditions to achieve an effective banking supervision.
b) Describe and analyse the framework that you would adopt to regulate and grade a bank to get component and composite ratings.
QUESTION 2
A
(a) Outline the various approaches adopted by Basel Committee on Banking Supervision (BCBS) in relation to measurement of capital to be set aside for credit risks
(b) What are the early warning signs that you would apply to assess the financial system at a macro level?
B
(a) Describe the reasons why banking institutions are subject to regulation and supervision
(b) Discuss the arguments against banking regulation.
QUESTION 3
A
Explain the different risk areas where supervisors would like to stress on in order to protect depositors and maintain financial stability. Moreover, what are the factors that need to be in place for a better supervision and regulation of banks?
B
Write short notes on the following:
(a) International Organisation of Securities Commission (IOSCO)
(b) International Association of Insurance Supervisors (IAIS)
(c) Bank Run
(d) Interest Rate Risk
(e) Operational Risk
(f) Systemic Risk
QUESTION 4
A
Differentiate between the regulatory approach to credit concentration risk to any single customer and that of related party transactions
B
The functions of the Central Bank of a country consist only of formulating and implementing monetary policy and of issuing bank notes and coins. Discuss
QUESTION 5
"Should financial institutions in Mauritius indulge in outsourcing?" Discuss