Banks are regulated by e.g. Basel-II or -III-rules. a) Please name the reason why the Basel accords bear the name of the Swiss town Basel. b) Please explain one aspect/ element of Basel II-equity rules. (reason(s) for rule; measurement/ figure; weakness; enhancement by Basel-III-regulation) Banks have to ensure that they are able to meeting all clients’ withdrawals by “holding liquidity”. c) Please explain the regulation of liquidity by Basel rules. (Basel-II liquidity regulation, event for strict(er) rules, enhancement by Basel-III-rules, measurement of liquidity situation of banks, effects on banks’ profit situation).

Banks are regulated by e.g. Basel-II or -III-rules. a) Please name the reason why the Basel accords bear the name of the Swiss town Basel. b) Please explain one aspect/ element of Basel II-equity rules. (reason(s) for rule; measurement/ figure; weakness; enhancement by Basel-III-regulation) Banks have to ensure that they are able to meeting all clients’ withdrawals by “holding liquidity”. c) Please explain the regulation of liquidity by Basel rules. (Basel-II liquidity regulation, event for strict(er) rules, enhancement by Basel-III-rules, measurement of liquidity situation of banks, effects on banks’ profit situation).

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter3: International Financial Markets

Section: Chapter Questions

Problem 5QA

See similar textbooks

Similar questions

Discuss the Basel disintermediated scenario and its impact on incumbent banks?
Discuss the evolution of the Bank Regulations and the Basel Accords by outlining the various development stages, the objectives that were set and the implementation challenges that has been faced along the way. As you discuss the subject you will be expected to look specifically at the following regulations frameworks: Bank regulation Pre-1988 - reasons for regulating bank capital, The 1988 BIS Accord, The G-30 policy recommendations, The 1996 Amendment, Basel II and Basel III.
Requiring a foreign banks to operate under the same rules as domestic banks is termed?
Identify the reasonsfor U.S. banks to operate in foreign countries and for foreignbanks to operate inthe United States.
Securities that are registered at the U.S. Federal level are not subject to U.S. state governments requiring their own registration because of _____________________. A. The Financial Institution Modernization ActB. SEC Rule 144AC. The Federal Reserve ActD. SEC Rule 415E. The National Securities Market Improvement Act
Which of the following is a negotiable written promise (by a bank) for a U.S. dollar deposit at a bank located outside the United States or in U.S. International Banking Facilities.? a.Certificate of Deposits b.Bankers acceptances c.Eurodollar CD d.Repurchase agreement
Compared to Basel II, Basel III capital adequacy regulation ______________. A. makes the weight of banks’ assets more credit risk sensitive B. imposes a higher total capital minimum ratio C. imposes a higher common equity Tier I capital minimum ratio D. is less reliant on credit rating agencies E. makes the weight of banks' assets less credit risk sensitive
Which of the following statements is true? Select one: a. The Basel Accord imposes maximum asset values on banks in major industrialised countries. b. The Basel Accord imposes risk-based capital ratios on banks in major industrialised countries. c. The Basel Accord imposes minimum liability values on banks in major industrialised countries. d. The Basel Accord imposes minimum earnings ratios on banks in major industrialised countries.
Discuss the Basel disintermediated bank scenario and its impact on incumbent banks’ present business models. Further, identify the areas of existing product and funding risks associated with the disintermediated bank scenario.
As required by Basel Agreements, U. S. bank regulators have agreed to a single uniform capital for Tier 1 capital. adequacy standard of 4.0% 5.0% 5.5% 6.0%
Why might an independent central bank be preferable to a trustee bank? What is an example of an independent central bank in Europe before 1998.
(a) Discuss the two opposite views towards regulating financial markets/institutions. (b) Discuss whether Basel 3 will help prevent a future banking crisis.