代做Principles of Banking – N1577 Seminar 10 Bank Regulation代做Java语言

Principles of Banking - N1577

Seminar 10

Bank Regulation

Question 1.

Simple Bank plc has the following balance sheet (bil pounds)

Liabilities	Assets
Equity: 15	Cash: 2
Disclosed reserves: 2	OECD government bonds: 30
Subordinated debt: 5	Interbank loans: 20
Customer funding: 180	Mortgages: 50
Loan loss reserves: 3	Company loans: 103
TOTAL: 205	TOTAL 205

* All interbank loans are to banks located in OECD countries

Assuming the Basel 1 Accord applies, what is the Basel 1 risk asset ratio?

Question 2.

Discuss the rationale for the regulation of banks.

Question 3.

The government safety net creates both an adverse selection problem and amoral hazard problem. Discuss.

Question 4.

Discuss the main limitations of banking regulation.