The 2007-8 Global Financial Crisis

The 2007-8 Global Financial Crisis.

I don’t know how to handle this Economics question and need guidance.

Topic:

The 2007-8 global financial crisis has revealed a disastrous effect of excessive risk taking by banks and highlighted the importance of the banking sector in the economy worldwide. As a response, the Basel Committee proposed the new Basel III Capital Accord on 1 June 2011 to regulate bank risk taking and promote financial stability.

REQUIRED:

You required to write a report, which

1. Outline theories of financial intermediation that explain why banks exist.

2. Describes and illustrates with examples the risks faced by banks.

3. Explain the rationale for banking regulation. Extra 10 marks available for linking the current set of rules of Basel III and a brief discussion on how these rules can foster financial stability.

It is suggested that the report should be balanced in attempting each sub-question.



*** Words count = 2900 words.

*** In-Text Citations and References using Harvard style.

*** I have uploaded file named “Suggested Reading” related to this work.

The 2007-8 Global Financial Crisis

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