Made the need for effective safeguards more urgent

Assignment Help Business Economics

Reference no: EM13984055

Discuss. “The internationalization of banking has weakened national safeguards against banking collapse, but at the same time it has made the need for effective safeguards more urgent.”

Please elaborate fully on the five difficulties in regulating international banking.

1. No deposit insurance, in particular, inter-bank deposits are unprotected

2. Absence of reserve requirements

3. Bank examination more difficult to enforce

4. Not clear which group of regulators has responsibility for monitoring a given bank’s assets

5. Not clear which central bank, if any, is responsible for providing Lender of Last Resort assistance.

Reference no: EM13984055

Questions Cloud

Debt crisis by selling european financial assets : Wealth holders around the world reacted to the Greek Debt Crisis by selling European financial assets and buying U.S. financial assets. Explain why their action changed the exchange rate between euros and dollars. Did their action strengthen or weake..

Fiscal policies-economy to both internal-external balances : Using the II-XX framework below, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances. Do start with an economy at Point 2 (you will have to address devaluation). A close to complete a..

Would such an agreement be an equilibrium : To Vote or Not to Vote: Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two units of utility from a vote against their ..

Suppose the herbicide manufacturer can vertically integrate : By itself, the upstream manufacturer cannot implement a price discrimination scheme against downstream consumers because downstream retailers can defeat it. To see this, suppose that home gardeners and farmers both use the same herbicide. Suppose the..

Made the need for effective safeguards more urgent : Discuss. “The internationalization of banking has weakened national safeguards against banking collapse, but at the same time it has made the need for effective safeguards more urgent.”

Technology contributes to the experience of workplace stress : What are some of the ways in which evolving technology contributes to the experience of workplace stress? What are some intervention that employee and employers might attempt in order to avoid or mange the stress associated with technology?

Distribution of consumption as a fairness concern : Traditionally we look at the distribution of consumption as a fairness concern, not an efficiency concern. Why is that the case? Is there a perspective from which income distribution looks like a public good?

Non-excludable in theory : What does it mean for a good to be non-excludable in theory one may worry that such a problem could completely shut down private markets. How did we deal with that in designing a private environment for the public goods case so that this doesn't happ..

Would this create a case for salary differentials : Suppose that a school district pays all high school teachers with the same years of experience the same salary, regardless of teaching field, and that this produces a surplus of History and English teachers, and a shortage of Science and Math teacher..

User Account

All Pages