Explain the concept of regulatory capture in the banking industry. If banking supervision is supra-national, will regulatory capture occur more or less often relative to a scenario where supervision is national? Justify your answer.
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- Banking regulation suffers from the principal-agent problem. Describe how this problem relates to regulators and politicians.How might possibilities for regulatory capture contribute to the large number of financial regulators and deposit insurance funds?In what way might consumer protection regulationsnegatively affect a financial intermediary’s profits?Can you think of a positive effect of such regulationson profits?
- evaluate and discuss four reasons why it is necessary to regulate banks, especially within the context of the COVID pandemic.Explain what is the function of the following components in a country's financial system. regulators, commercial banks, investment banks and non-banking intermediariesIdentify regulators in sectors apart from financial services, that should be involved in the Central Bank’s Fintech Regulation Committee. Motivate why these regulators .should be involved.
- What do the authors mean when they state that financial intermediaries can achieve economies of scale with respect to transaction costs? A. Intermediaries can spread transaction costs across larger transaction volumes, so the cost per unit is lower. B. Intermediaries tend to specialize in certain types of transactions, so their costs are lower because they operate at lower volume than other types of financial firms.When regulators engage in macroprudential regulation, they focus on O the safety and soundness of the entire financial institution. O the credit standards of all loans held by the financial institution. O the safety and soundness of the financial system in aggregate. O the safety and soundness of cach liability of the financial institution. ADiscuss the goals of regulatory frameworks with regards to reasons governments manage regulate-es and use different regulators to policy the financial markets
- Why is it that Bank Deposit Secrecy became a highly-sensitive issue with respect to the implementation of the Anti- Money Laundering Act ( RA#9160)? Support your answer.Recognize thehistorical context ofthe development ofthe central bankingsystemWhich is NOT a common characteristic of financial intermediaries? *A. None of the choices.B. Offers secure storage for their clients' assets.C. Having a diversified portfolio of investments.D. Clients are given investment advice as to which investments are profitable.E. The risks posed by various financial intermediaries are the same.