Bank Regulation -The Way Forward
Since the recession hit the U.S.A. And the effect felt across the globe, there has always been the debate on the role that the banks and the banking system played in occasioning, perpetuating and even failure to stop the recession. Despite the various regulations that exist in the banking system, there are still massive failures like the failure to understand the new business models, inability to monitor and test banks Risk analysis and management systems, regulations allowed banks to hold assets and loans off balance sheet without capital backing and overreliance on capital regulation to reduce the probability of banks to fail. Indeed most banks that failed had capital in excess (Mark Carney, 2010).
Our group met and having considered the situation above and the current trend in the banking industry, we came up with consensus that the banking industry needs regulation and very specific kind of regulations that can help lower the probability of bank failure as well as reduce the cost of those failures that will always occur from time to time. The following are the various recommendations that our group came up with in a bid to have working regulation that can help the banking system;
There is need for structural regulation, i.e. put a...
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