Banking regulation video

Banking regulation video

Published on 18 May 2020

video on banking regulations in europe

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Transcript
00:00
BANKING REGULATIONS
00:01
financial institutions have the obligation of performing due diligence to businesses by thoroughly checking their transactions
00:01
Failure of financial institutions to perform duediligence may result to
00:02
Market Failures
00:09
Decrease in economic growth
00:10
Increase in fraud cases
00:11
Bank Failures
00:12
Legal battles between governments, financial institutions and the respective companies.
00:17
Why are banking regulations important?
00:18
Result in financial innovation
00:19
Creation of new opportunities
00:20
Reduction of market cost capital
00:21
Economic development
00:22
Financial stability
00:28
Conceptual framework of banking regulations 
00:29
Banking regulations as a challenge 
00:30
Regulations as an agenda
00:30
Pro-active approach which stresses
00:31
Supervision
00:32
 Monitoring
00:38
Country Related experiences are essential in developing of financial regulations.
00:39
A good example in Europe is Greece that was once drowned in debt.
00:40
Or the US that developed the Glass-Steagall act
00:41
The act resulted in the separation of commercialand investment banking. 
00:47
Supervision
00:48
 important in substantiating a national champion policy. 
00:48
Helps in the creation of market restrictions on access and competition were motivated by concerns of stability. 
00:49
controls interest rates to keep the credit cost low, leading to credit rationing
00:55
Banking regulations oriented to marketing resulted from  the Basel Accord 1 ofJuly 1988. 
00:56
The Basel accord required major international banks an 8% ratio between capital and risk-weighted assets
00:56
The accord also lists recommended banking powers of supervisory authorities.
01:01
Basel Accord 2 was formed in 2004 
01:02
The advantage of accord 2 in respect to one was that it resulted in creation of three pillars.
01:03
Pillar 1.
01:03
Creation of a framework to measure capital adequacy.
01:04
Identification of the minimum capital essential for banks
01:10
Pillar 2.
01:12
Continuous dialogue between supervisor and the banks to accomodate the changing businesspractices.  
01:12
Pillar 3.
01:14
Improvement in the flow of information from the financial institutions to the public
01:19
Benefits of the Basel Accord
01:20
Market discipline
01:21
Healthy and stronger competition.
01:22
Safety and stability of financial institution
01:23
Introduction of deposit schemes to:
01:24
Avoid bank runs
01:30
Case study of Greece.
01:31
As earlier stated Greece was once drowned in debt.
01:32
They had to come up with ways to bring their financial situation back to sanity.
01:33
Most of their regulations were inspired by their debt. 
01:38
They formed the Bank of Greece that is responsible for oversight of financial institutionsespecially in:
01:39
Making of regulations.
01:40
Enforcement of the regulations
01:41
Supervision of financial institutions.
01:45
Bibliography
01:45
Galdia, M. (2011). Conceptual Aspects of Financial Regulation.      In HREL (pp. 85-104).Heimler, A. (2006). COMPETITION POLICY, ANTITRUST ENFORCEMENT,    AND BANKING: SOME RECENT DEVELOPMENTS. In FOURTH MEETING OF THE     LATIN AMERICAN COMPETITION FORUM. Rome. Retrieved 17 May 2020.Lazaretou, S. (2011). Financial crises and financial market regulation: the long record of     an ‘emerger’. In Eurosystem. Bank of Greece Printing Works.Loizos, K. (2010). Essays on Financial Regulation and Financial Development.     In Thesis. University of Athens
01:51
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