Exam 10: Economic Analysis of Financial Regulation

Agreements such as the ________ are attempts to standardize international banking regulations.

China is trying to move its banking system from being strictly ________ owned by having them issue shares overseas.

Since depositors,like any lender,only receive fixed payments while the bank keeps any surplus profits,they face the ________ problem that banks may take on too ________ risk.

One of the problems experienced by the savings and loan industry during the 1980s was

Under the Basel Accord,assets and off-balance sheet activities were sorted according to ________ categories with each category assigned a different weight to reflect the amount of ________.

The federal agencies that examine banks include

Depositors lack of information about the quality of bank assets can lead to

The Basel Accord requires banks to hold as capital an amount that is at least ________ of their risk-weighted assets.

"Bureaucratic gambling" refers to

FDICIA ________ incentives for banks to hold capital and ________ incentives to take on excessive risk.

The evidence from banking crises in other countries indicates that

Although the FDIC was created to prevent bank failures,its existence encourages banks to

As in the United States,an important factor in the banking crises in Norway,Sweden,and Finland was the

Banks will be examined at least once a year and given a CAMELS rating by examiners.The L stands for

Who has regulatory responsibility when a bank operates branches in many countries?

A bank failure is less likely to occur when

The contagion effect refers to the fact that

The Federal Home Loan Bank Board and the FSLIC,both of which failed in their regulatory tasks,were abolished by the

All of the following are common to banking crises in different countries EXCEPT

To prevent bank runs and the consequent bank failures,the United States established the ________ in 1934 to provide deposit insurance.