In recent years, ‘direct lenders’ and ‘shadow banks’ have increasingly provided funding for businesses, replacing the role traditionally played by commercial banks. To what extent is this true and who are these ‘direct lenders’ and ‘shadow banks’?

Q: What are the main sources of funding for commercial banks?

A: Banks are a financial institution that receives money from customers and makes a loan to the…

Q: Banks are important to the study of money and the economy because they     provide a channel for…

A: Banks and economy: Banks are an important branch of the economy in modern world. Banks perform…

Q: Provide an explanation of whether it is advantageous for a bank to classify debt investments as…

A: ANSWER   Provide an explanation of whether it is advantageous for a bank to classify debt…

Q: Why were credit unions less affected by the sharp increase in interest rates in the late 1970s and…

A: A commercial bank is a financial institution that accepts deposits, provides checking account…

Q: What is the difference between Investment Banks and regular Banks? explain one small paragraph.

A: Introduction: Investment banks are those banks that are specialize in providing institutional bodies…

Q: What are the possible arguments for setting up a firewall between investment banks and commercial…

A: At the time, improper banking activity–the overzealous commercial bank involvement in stock market…

Q: . What are some ways banks can state theircharges, and how should the cost of bankdebt be analyzed?…

A: APR is the annual percentage rate. APR is calculated by taking into consideration all other charges…

Q: what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM FOR THE BANKS AND BORROWERS? provide…

A: A moratorium is a temporary cessation of activity until future circumstances necessitate its lifting…

Q: Examine the processes for the acquisition of licence by Banks and other financial institutions in…

A: Answer: The legislation which regulated the acquisition process of license by a bank is Banking Act,…

Q: Compare and contrast the business models of Fintech firms with commercial banks.

A: Fintech Firm uses modern technologies and software to provide automated and improved financial…

Q: a. Discuss the role of banks as financial institutions that fuel the economic growth of a nation.

A: "As this question contains multiple questions, we will answer only the first question as per…

Q: You have studied the application of partnership, sale and purchase, and rental based Islamic…

A: Introduction: This question is based on banking management and financial services. Financial…

Q: Why are some entrepreneurs hesitant to avail of commercial bank loans? Why do some of them resort to…

A: Commercial bank is a type of bank which accepts deposits from public and advance deposits to public…

Q: When any central bank wanted to increase the money supply and loosen credit conditions, what would…

A: In order to increase the money supply and loosen credit conditions, the central bank would purchase…

Q: Explain why some financial institutions prefer to provide credit in financial markets outside their…

A: Financial institutions are organizations which deal with financial and monetary transactions. Banks,…

Q: what is the impact on the Loanable Funds Market

A: Loan-able funds are the amount or the funds available in the loan market for the borrowers. These…

Q: There has been concerns among businesses that the recent reductions in the NIPR has not led to…

A: In the given question we need to answer the following question : There has been concerns among…

Q: Banks still make more money on investments than fees for customer-related non-credit-related fees.…

A: Investment banking:  Investment banks will also help with reorganizations, mergers, and trades for…

Q: By giving clients with a variety of perks and advantages, as well as taking measures to keep them as…

A: Customer satisfaction: Customer satisfaction is the largest competitive advantage for banks. It…

Q: Which of the following has caused banks difficulty in estimating liquidity needs? A. competition for…

A: It is the institution that deals with financial and monetary transactions in the economy.

Q: Discuss with examples why the money markets could be considered arguable as playing complementary…

A: The complementary role of Money Markets with banks is discussed as follows: The money market is a…

Q: The central bank intervened heavily in the credit crisis. Explain whether you believe the central…

A: Central Bank: As the financial institution with exclusive power over the generation and circulation…

Q: The _____ rate is the lending rate at which the largest and most creditworthy corporations borrow…

A: The lending of money is dependent upon the credit rating of a corporation. Higher the rating, lower…

Q: Financial sector plays a crucial role in the accumulation of capital and the production of goods and…

A: X Co.Ltd uses short term funds by issuing commercial paper and the benefit of commercial papers in…

Q: Capital and the production of goods and services. In many developing nations, limited financial…

A: The two options available to the company is to raise finance via private placement of shares or to…

Q: why the non-government financial institutions are allowed to operate in our economy.

A: A non- government financial institution are those that does not have full banking license or is not…

Q: Why do we have banks chartered by the States, and some also chartered by the Federal government?…

A: State chartered banks are operated in a particular state only. But there is no restriction on the…

Q: According to the FDIC, they would like to see fewer banks in the future. What will be the outcome…

A: FDIC mentions in its latest report that they will see lesser banks in the future , the explanation…

Q: Why would the U.S. government consider reinstitutingthe “wall” between investment banking and…

A: A commercial bank is a financial institution which provides various financial services like…

Q: Based on the functions of the banking system, give reasons why governments bail out banks during an…

A: In the period of an economic crisis if the banks are creating vast losses and at risk of failure the…

Q: Identify which one of the following statement is correct? a. Banks are basically financial…

A: In the given case Option C is correct... Banks are basically financial intermediaries between the…

Q: Explain the difference between the primary and secondary markets. What roles do banks play in these…

A: capital market of the financial system rises capital from shares, bonds, and other investments to…

Q: Which of the following are ways that commercial banks use the funds they receive? Check all that…

A: Solution- (1)-  The funds received by commercial banks are typically wont to lend and thereby earn…

Q: what is the effects of commercial and non commercial financial services on people of oman and on…

A: A nation's banking sector plays a predominant role in stimulating and sustaining economic growth.…

Q: Commercial banks are often restricted by Central banks to hold sufficient capital. Why is such a…

A: A commercial bank may be a financial institution that accepts deposits, provides bank account…

Q: If there is no asymmetric information problem from the perspective of lenders and borrowers, is the…

A: Financial market is the place where investors invest their funds in various securities and companies…

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.