Nobody downloaded yet

International Banking Law and Capital Markets - Assignment Example

Comments (0) Cite this document
Summary
Basel III No: University: Date: Basel III has already faced considerable criticism. Two of the main criticisms are that it is overly complex (proposed four layers of capital) and that the capital requirements therein are unrealistic…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
International Banking Law and Capital Markets
Read TextPreview

Extract of sample "International Banking Law and Capital Markets"

Download file to see previous pages There is a need to develop more stringent standards for the banks to address the deficiencies that come on the surface in the financial crises of late 2000. The introduction of Basel-111 aims at to strengthen the capital requirements of the bank and the regulatory requirement of bank liquidity and bank leverage. In Basel II, the risk management was out sourced to third party. The Ratings of financial instruments were conducted by the outsource agencies Fitch ibca, moody and poor and standard without intervention of official agencies. The AAA ratings on mortgage backed securities, credit default swaps and other instruments in practice evidencing extremely bad credit risks. The implementation of Basel III surely will decrease annual GDP growth to the extent of 0.05 to 0.15 percentages. It is responsibility of the directors of the company to keep an eye on market liquidity condition that enables them to hold major assets for the accountability of material losses2. Requirement of Basel III The Basel III primarily addresses and focuses on the liquidity risk, capital adequacy ratios and stress testing. It requires banks to follow the requirement of Basel III and to compute the liquidity and leverage ratios accordingly. Therefore, the banks are to keep themselves align with the new requirement in order to integrate all relevant data to develop a new approach of data analysis and modeling. Basel III demands sufficient transparency and zero rated documentation ever than before to ensure that the deployment of funds would bear fruits3. Banks must ensure creation of new models that ensure compliance of Basel III requirement. It is a matter of fact that most of the institutions are reluctant to implement it in its true spirit due to reasons best known to them. However, they have no other option but to implement it in order to avoid penalty from compliance and monitoring watch dogs. In other words, compliance of Basel III requirement is mandatory and not optional. Keeping in mind the necessity, the banks are developing infrastructure and models for the banks to make best use of its capacity to pin point and respond to the profit making opportunities4. According to Simon Nixon, “no one disputes the broad thrust of Basel III, that banks should hold much higher levels of higher-quality capital. Indeed, all major European banks have well-developed plans to meet the new rules ahead of time.”5 It is a matter of fact that in today’s world each and every organization including banks heavily relies upon latest technology to meet the requirement of customer satisfaction besides regulatory compliance by the banks. The more efficient business decision making are based on the reliability of their quality data. Any bank who successfully receives the data through reliable domestic sources within the bank to position its data warehouse on sound footings coupled with technology infrastructure stands to deliver the goods efficiently in terms of compliance and better business6. “Basel III tightened up the rules on what could be counted as core capital, increased the risk-weights that determined how much capital a bank should hold against a particular exposure and finally introduced a tough new minimum ratio of core capital to risk-weighted assets, set at 7% for small banks and rising to 9.5% for the largest banks deemed ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International Banking Law and Capital Markets Assignment”, n.d.)
Retrieved from https://studentshare.org/law/1399171-international-banking-law-and-capital-markets
(International Banking Law and Capital Markets Assignment)
https://studentshare.org/law/1399171-international-banking-law-and-capital-markets.
“International Banking Law and Capital Markets Assignment”, n.d. https://studentshare.org/law/1399171-international-banking-law-and-capital-markets.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF International Banking Law and Capital Markets

Financial Markets: Distinguishing between international banking and global banking

...organisations came toward East Asian countries for setting up their business interests in the form of locally managed foreign banks with less risk factors of debt liability. An overall restructuring of international financial sector was witnessed only with the 1997’s crisis. American bankers were the most potential beneficiaries of the new condition of East Asian market. The international exposure of Asian wealth in the form of net capital export was on the start with American entry. It is, however, noticeable that a vicious financial cycle is formed automatically when recession hits at global levels on internationally high end business giants. In such a...
12 Pages(3000 words)Assignment

International Banking

...in the loan, lends somewhere else, therefore, diversifies the portfolio. The third reason concerns regulatory capital requirements; the ability of a bank to lend is subject to requirements that are both internal and external and keep a given percentage of its assets as envelop for its accessible loan requirements: known as Regulatory Capital Requirements.42 Lastly, it may be aiming at crystallizing a loss; this entails the case where the lender may decide to sell its commitments if the borrower runs into difficulties. In this regard, specialists dealing in distressed debts provide a market for such loans. However, prior to transfer, the lender ought to...
18 Pages(4500 words)Assignment

International banking law

...?International Banking Introduction The international banking industry has long recognized its inter-relationship with each other even if they are separated by various jurisdictions, distance and economic system. Their supposed influence in the economic stability of the global economic system is actually rooted to their sensitivity and fragility. And yet, the banking sector’s role in the economy of a country or even in the world, in general defines the baseline of any financial transaction within each country and between, parties around the world. The Basel III consultative document presents the Basel Committee’s proposal to strengthen global...
15 Pages(3750 words)Essay

Capital Markets and Investment Banking Process

...? CAPITAL MARKETS AND INVESTMENT BANKING PROCESS Table of Contents Table of Contents 2 Investment Banking Process for an IPO 3 Asset Selection for an Investment Portfolio 4 Capital Market Instruments Used in Portfolio Construction 5 Conclusion and Recommendations 6 References 7 Investment banking plays a vital role in today’s economy. This study is focused on the role played by investment bankers in the IPO process of a company and how it functions during the issue of shares made by the companies to the public. Next, the various factors related to the selection of asset classes while constructing an investment portfolio...
5 Pages(1250 words)Essay

Capital Markets and Investment Banking Process

...Capital Markets and Investment Banking Process Investment Banking Process: Investment banking has no features like the traditional banking. Investment banks are involved in public and private market transactions for investors, companies and governments. Investment banks advise and assist its clients in issuing of debt and equity securities, mergers, acquisitions, diversification etc. Investment banker’s services are acquired when a company needs to raise funds in the financial markets usually through the issuance of new securities. Investment banks...
4 Pages(1000 words)Essay

International Finance & Capital Markets

...?International Finance & Capital Markets Executive Summary Growth of any business internally can encounter high risk in this dynamic world of business. Thus there is always a need for acquiring existing business by the entrepreneurs. The strategy is less risky and it eradicates the problems that are encountered if the business is going to get started from scratch (i.e. acquiring new customer base, recruiting efficient employees and also development of new products). Thus it is quite profitable for the companies if they go for acquiring efficient firms. The essay highlights the valuation of an acquisition plan that is done by United Kingdom’s leading engineering support...
24 Pages(6000 words)Essay

International Capital Markets and Finance

...International Capital Markets and Finance Question It would appear that currency volatility in 2008 is increasing and it is possible that some countries may see very substantial changes in the value of their currency as a result of the current global financial crisis. (a) Identify the main participants in the forward exchange market. Forward Exchange Market Forward market is one of the various tools available to mitigate the risks involved in foreign exchange risk. Forward market is an OTC market where traders can buy or sell currency at a pre-specified rate for delivery on a pre-specified date. The...
9 Pages(2250 words)Assignment

International Banking Law

...Topic: International Banking Law Introduction Companies take loan from banks and other financial s mainly at the start of the business as a start-up capital or when it plans expansion and diversification. Banks consider various factors before loaning out to companies. There are certain basic things to be followed, while considering commercial loans. Foremost among them are, 1) it is better to make short-term loans, 2) to see that the money that has been loaned can be easily converted to cash, 3) to avail of the detailed knowledge of the credit position of the borrower and the details of the business before loaning out money and 4) to...
14 Pages(3500 words)Essay

International Banking Law: Capital Markets and Loans

...the International Banking Law. The bonds are issued and traded in the market which requires documents are reflected above27. The subscription agreement of the bond provides a right regarding the bond issue wherein the managing underwriter gets the power to dismiss an issue in regards to the occurrence of the particular events28. The issuer of the bonds for the proper working of the market and for the fulfilling the responsibilities towards the bond holders appoint a fiscal agent.29 The fiscal agent is the one who is responsible to comply with the duties of the principal paying agent for the issuer. In this case the issuer are Emma and Dan, the sole...
16 Pages(4000 words)Essay

International Money and Capital Markets

...International Money and Capital Markets Part I Determinants of movement in the exchange rate The in the article has recognized four main factors that had a strong influence on the movement of exchange rate, namely, difference in economic growth profile among countries, relative price level, trade flow among countries and prevailing interest rate. One of the important aspects of an economy that highlights its growth prospect in context of international business is gross national product or gross national income. Unlike Gross Domestic Product, GNP takes in consideration foreign trade activities. A developed economy is defined by high level of economic activities including foreign trade resulting to high demand of foreign currency... various...
8 Pages(2000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic International Banking Law and Capital Markets for FREE!

Contact Us