Analyse the main mechanisms of credit risk transfer developed by banks between 1970 and 2007. In your assessment which of the developments mentioned would have most contributed to the global financial crisis?
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- Analyse the main mechanisms of credit risk transfer developed by banks between 1970 and 2007.
- In your assessment which of the developments mentioned would have most contributed to the global financial crisis?
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- Explain what is the function of the following components in a country's financial system. regulators, commercial banks, investment banks and non-banking intermediariesIdentify the relationship between money, credit and financial institutionsExplain the ways in which financial institutions manage credit risk.
- Analysis of how the actions of financial intermediaries can result in an economic crisis e.g., the securitisation of mortgages and development of subprime mortgages (market) and the role of intermediaries in recoveryWhat has happened to the profitability of financial firms in the US economy in recent decades? Why have they been able to increase their profits? Is this a good thing for the US economy as a whole?Explain why the 2010 Obama Wall Street Reform Act was considered the most extensive overhaul of the US financial system since the Great Depression? What was the logic and need for this law? Explain in detail.
- List any six categories of factors that could cause a financial crisis.Explain the reasons for the emergence of financial crises in the world and what measures were taken to overcome the crisis.Explain how an adverse economic climate would impact a bank's balance sheet. Discuss with reference to Caribbean examples. What would be the relevant risks exposure and how are banks likely to respond? Discuss Financial Statements
- What technological innovations led to the developmentof the subprime mortgage market?Explain what a debt crisis is and how it can trigger a banking crisisYour childhood friend believes Commercial banks no longer have any relevance in the current economic climate and instead he believes we should do FX trading instead. He doesnt understand the financial system but ask your guidance in explaining how commercial banks really make money? Kindly provide a brief response with examples in your response to him.
