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Financial Institutions And Markets Key Article Review

Added to that, the problems in Europe may snowball into a major balance of payment position and reversal in currency indices. This may cause future problems to banks and institutions that operate on a global scale and are at the risk of facing acute financial dilemmas in the near future. A dilemma for the sector for example is that in most countries there are debts that are due to mature in the next 2 years. This will create pressures in the bank funding by that time. This applies to Canada too. Further liquidity in the capital market will also go down because corporate debt markets also are low in investment and low demands in aggregate. 3. Regulatory or public policy implications

The global banking sector is not healthy to prevent collapse a fall back fund and capital to tide over the poor interest rate, maturing debts and finally credit demands is to be created. Canada must also implement the strategies proposed at the G20 Summit. Further the plan envisages the creation of a net stable fund ratio and the fall back fund and capital to tide over the poor interest rate, maturing debts and...

This can be followed in principle. Therefore the G20 summit strategies like a buffer capital can be a viable solution.
4. The critique of the article - what do you feel are its strengths and weaknesses

Too much emphasis is placed on the international monetary scenario and it is shown to adversely affect the economy and banks of Canada. But the banks have not failed, and this could mean also that some other economic force in Canada is capable of tiding over the crisis.

Although the household sector is mentioned, there is no research into how it has affected and supported the financial institutions. While emphasis was placed on the global solutions, the method of keeping the capital market and investments intact in Canada which can be affected by the domestic sector is ignored. To say Canadian banks may also collapse on international cues is not very convincing and on the whole the reports are sketchy and do not clearly show the exact Canadian situation.

References

N.A. "Bank of Canada Celebrating 75 years" Financial System Review,

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References

N.A. "Bank of Canada Celebrating 75 years" Financial System Review,
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