what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM  in banking to  BANKS . Give an example

Q: What are the main functions performed by commercial banks?

A: A type of financial institution that is permitted to accept deposits and provide loans is called the…

Q: Which of the following statements is false? A.   Moral hazard is the lack of incentive to guard…

A: Analysis of the options:   A: Moral hazard is the lack of incentive to guard against risk where one…

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: efly explain how banks can optimize their position through managing their use of currencies?

A: Step 1   Significant restructuring of the treasury structure and the way companies interact with…

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: Ways that banks compete for customers

A: Introduction: Banking is a highly competitive sector with virtually similar goods offered by all…

Q: what is MORATORIUM” IN BANKING? explain.

A: During a moratorium period, your lender will calculate the interest on your loan using the notion of…

Q: why is it important for companies to prepare bank reconciliation periodically?

A: Any businessman or a company contains a book called as Cash Book. This cash book contains the…

Q: Which of the following is not a reason for banks to be regulated? a.To protect depositors. b.To…

A: A bank is a type of financial institution that handles all procedures linked to depositing and…

Q: what are the disadvantages and advantages of big banks and small banks?

A: Answer:

Q: what are the two most differences between the bank side and the book side of a bank reconciliation?

A: Bank reconciliation is a statement which explains the reasons of difference between the balance as…

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: Outline the main financial risks exposed by commercial banks and their implications on the value of…

A: The danger of losing money on an investment or business endeavor is referred to as financial risk.…

Q: hy banking regulation has been so important over the years?

A: Step1 The function of the  Bank in the country has become extremely relevant as cross-border…

Q: Discuss using figures how Bank Overdraft will affect the preparation of Bank Reconciliation…

A: Bank reconciliation statement is a kind of statement prepared in order to reconcile the balances…

Q: Securitization changes the systemic (system-wide) risksin the regulated and unregulated “shadow”…

A: Securities refer to the financial instruments holding monetary value representing ownership in a…

Q: What are the appropriate ways to reach quicker break-even for bank operations?

A: The break-even point is the point at which the revenues that are generated and the costs or expenses…

Q: Under what conditions may a bank refuse to make payment?

A: Conditions:- - when the customer has died - customer had insane or insolvent. - customer lost the…

Q: advantages and disadvantages of regulatory forbearance in banking. How useful has it been in…

A: Regulatory forbearance is the regulators' refusal to exercise their right to close down an insolvent…

Q: What bank regulation is designed to reduce adverse selection problems for deposit insurance? Will it…

A: Banks are the financial institutions that are involved in providing financial services to their…

Q: What is the purpose of preparing a bank reconciliation?

A: Bank reconciliation is prepared to reconcile the company's cash book that is reconciled with its…

Q: hat is the importance of regular bank reconciliations?

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: Discuss the potential market failure in the diamond model of banking regulations

A: The diamond model in banking is also known as the dual principle-agent relationship model because it…

Q: A. What is a bank reconciliation and why is it important for companies to do it periodically?

A: Balance per bank Add : Undeposited collections Total Deduct : Outstanding checks Check No. x…

Q: Do U.S. GAAP and IFRS differ in how bank overdrafts are treated? Explain.

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: Why has the trend in bank supervision moved awayfrom a focus on capital requirements to a focus on…

A: Bank supervision is generally conducted in order to ensure that the banking operations are conducted…

Q: Distinguish between illiquidity and insolvency for banks and discuss the role of capital in…

A: liquidity is considered as the short-term problem of banks where they are unable to make payments…

Q: Why will bank never opt for the rejection of payment of LC to exporters bank?

A: A Letter of Credit or Credit Letter refers to a assurance letter given by the bank to its buyer that…

Q: What is a central bank,

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

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: How banks safeguard the deposits of customers from financial losses?

A: The banks safeguard the deposits of customers with the help of an independent agency.

Q: 1 Would bank supervision be made easier if banks' CAMELS ratings were made available publicly? What…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Why is there a need for  banking regulations to regulate savings  and  the lending of money by…

A: Banks are one of the most important financial institutions. Banks play an integral role when it…

Q: What are the benefits of government setting and managing bank fees and rates to depositors?

A: Government used to deal with the citizens as well as deliver the public as well as social services,…

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.