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... The Basel Accords Due Introduction When banks are operating at optimum efficiencies they are essentialto the growth of the modern economy, facilitating spending and investments, allowing homes to be purchased, and businesses to expand. Acting as financial intermediaries they are a “…vital part of a nation’s economy.” (Larson, 2011) But as history has shown us that, as during the Depression and the immediate United States financial crisis, when banks fail there are serious consequences. This can cause a domino effect involving millions of citizens. Because banking has become more and more an international endeavor, there is a greater need for banking regulations that encourage international...