The Impact Of International Bond Markets On Banking Sector And Higher Level Of Monitoring

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Britain’s banks were underperformed and was ranked among the most unprofitable banking industry among the world. However, the delayed recovery was due to more strict regulation in banking sector and the higher level of monitoring. The overall banking ethic has been improved after the financial shock as banking industry shoulder the responsibility of the economic recovery by taking the bank levy. Even though the pace is slow, every improvement has been built up stubbornly. The British capital market is still highly dynamic, the investors would recognise the opportunity once the industry start to recover and boost the race of restore. Financial institutions participating in the international bond markets have numerous rewarding benefits…show more content…
It is inherently difficult to predict the timing and intensity of a systemic banking crisis. Therefore, informs our strictly ordinal definition of credit quality. It is not the absolute (cardinal) level of default risk that matters, but rather the rank-order of default risk among all banks. In order to reduce the cost of processing bank accounting information, banks’ public reporting requirements should be vastly enhanced to facilitate cheaper and better credit analysis. In most countries, bank regulators protect their privileged data access, and do not share crucial bank data publicly (or even with other bank regulators) in a narrow pursuit of their own agency power and to shield themselves from accountability. Future bank regulation therefore needs to create an entirely new information environment for external credit analysis. Better public information and more bank reporting is the best strategy to reduce the exorbitant influence of credit rating agencies in the current system. In conclusion, while CDOs are providing liquidity to financial institutions, the credit level should be monitored and the value of the related product needs to be evaluated and updated on a timely basis in order to minimize the threat of asset bubble. The level of using CDO as a finance method should be controlled as it would have a negative influence on the ability to re-acquire loans. Also, the risk of

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