a) By using a simple balance sheet of a bank, discuss the main types of financial regulations and explain how these regulations can overcome the risks in the financial sector. 

  

b) What are the main concerns about regulations in the financial sector? What kind of additional regulatory tools can policymakers implement to overcome these potential issues related to financial regulations? Hint: In your answer, focus on the impact of regulations on risk-taking behaviour, and provide some relevant examples.

 

c) From policymakers' perspective, what are the other effective methods of risk management (before and during crisis times) in addition to financial regulations?  

d) How financial regulations differ in advanced economies and emerging economies?

 

 

Answer rating: 100% (QA)

a In a banks balance sheet financial regulations typically target three main areas capital adequacy liquidity and asset quality Capital adequacy regul... View the full answer