Bank Regulation and Expansion



Bank Regulation and Expansion

Introduction

The paper attempts to discuss the various aspects of the banking regulation as well as its expansion in a new market in a holistic context. It focuses on a Qatar based bank, which is considering expanding its operations in the United Kingdom. The purpose of this paper is basically that of a briefing paper aimed at providing sufficient information to the management and executives of the bank about the regulatory regime in the United Kingdom. It also aims to ensure that the management understands as to how banks are regulated and how possible future developments can be achieved. This paper precisely highlights the aims and objectives of the regulation in that centre, describes the regulatory structure, explains the approach to the supervision and the use of enforcement sanctions and penalties, and presents main criticisms as well as possible recent developments and proposals for change.

Discussion

It is very important for the bank to consider the banking regulations in the United Kingdom. This is how the Qatar bank will be able to structure its operations and decide as to how the bank should operate and how it should work in a new jurisdiction. The management of the bank should be able to make sure that it studies the banking regulations in the best manner and should be able to fulfill the requirements of the banking regulation. This is how the people of the bank will be able to work successfully in a new jurisdiction. The Qatar bank should be able to meet all the requirements of the UK banking regulation so that the government or the regulating authority does not interfere in the operations of the bank.

Aims and Objectives of the Regulation

There are various aims and objective of this regulation. In UK, the regulating authority such as the European Banking Authority (EBA) has set regulations in order to make sure that the banking sector of the region is able to fight any difficult situation that arises. There are different laws and regulations related to banking such as Financial Services and Markets Act 2000. The Financial Services and Markets Act 2000 created the Financial Services Authority (FSA) to govern and regulate the financial sector of the country. The following are the aims and objectives set by the current reform in the banking regulation in order to make sure that the banks work in the best possible manner:

The main objective of this regulation is to make sure that the buffer in the quality, as well as, the quantity is increased so that the banks do not face any financial crisis in the future.

The second aim is to increase the liquidity of the banks. For this the regulators ensure that the banks have enough liquid assets that will help them to meet the urgent requirements, if any of them arises.

The third objective is to reduce the dependency of the banks on large financial institutions. This is done to make sure that the banks do not suffer if any of the ...