Financial Crisis and Regulation

By



ACKNOWLEDGEMENT



I am very grateful to God who has given me the grace to start this course and end it successfully. I would like to thank my family, who worked really hard and stood by me all the way. God bless my family who gave me full support and encouraged me. I would like to thank my supervisor, for her patience and support. Finally to my friends and all who have made the completion of this project a success, thank you and God bless you.

DECLARATION

I declare that the work in this dissertation was carried out by me. The project is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other award.

SIGNED: ............................................................. DATE: ..........................

ABSTRACT

The major purpose of this dissertation was to examine the Financial Crisis and Regulations. There was also a need to assess the various factors related to the Financial Crisis and Regulations. It was important to see the relationship various variables which were discussed in the study. There were several secondary sources from where the data was collected for the research. The secondary sources which were collected for the research consisted of libraries, journals and different number of articles. The main objective for the usage of these resources was to collect maximum information about the Financial Crisis and Regulations. In the end, these sources provided a lot of important evidence which was very important in interpreting the overall results of the study. Therefore, these were the major issues related to research study that was discussed in detail.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

1.1 Background of the topic1

1.2 Rationale of the Study1

1.3 Hypothesizes Development/ Statement of the Problem4

1.4 Aims and Objectives4

1.5 Proposed Dissertation Outline4

CHAPTER 2: LITERATURE REVIEW6

2.1 Why Banking Regulations?6

2.2 Financial market failure and banking Regulations6

2.3 Role of Industry Regulators7

2.4 Liability Structure and Market Information9

2.5 Causes of the Financial Collapse10

2.6 Importance of Monitoring Financial Stability14

2.7 Useful measures necessary for Financial Regulation16

2.8 Factors that contributes towards financial crises18

2.9 Soundness of the Banking System19

2.10 Financial Reforms for the Future22

CHAPTER 3: METHODOLOGY26

3.1 Overview of the topic26

3.2 Research Strategy26

3.3 Search Strategy27

3.4 Research Evidence Inclusion Criteria28

3.5 Data Extraction strategy28

CHAPTER 4: DISCUSSION AND ANALYSIS29

4.1 Overview of the Analysis29

4.2 Interpretation of the Data Analysis29

?Role of Banking Institutions32

?Importance of the Financial Ratios to maintain Regulation35

?Types of Risks identified in the Economy38

4.3 Findings of the Study43

CHAPTER 5: CONCLUSION44

5.1 Summary of the topic44

5.2 Limitations of the Study45

5.3 Recommendations for the study45

REFERENCES46

CHAPTER 1: INTRDOUCTION

1.1 Background of the topic

The severity of the financial turmoil following the bursting of the housing bubble U.S. and subprime loans in 2007 has surprised analysts and forced them to reassess the level and scope of regulations. Although the recent crisis has several common elements with past crises, its magnitude is lot more as it channelled into global financial market rather than confining to one geographical location. Nevertheless, it highlighted the weaknesses in the regulation and management of financial and non financial intermediaries and stressed the demand for new ...