Tuesday, June 16, 2009

The development of international

The development of international
Control of competition between countries are also experiencing growth due to liberalization of free trade globally. However, a more significant is menguatnya the economy and politics of the EU. Liberalization among the countries strengthen relationships between financial institutions, markets and countries.

Impact on the bank supervisory and regulatory
Developments in the financial market liberalization and the inter-state bank supervisors, especially considering that the central bank's financial regulations have been much weakened.

Before the period of liberalization in the year 1970 and the 1980s focused on the financial regulations:
Authorization of financial institutions
Provide a strict restriction on the activities permitted for financial institutions in different
Definition of ratio-the ratio of balance sheet and bank obligations such as mandatory minimum level of cash manjaga on the central bank (GWM) to maintain minimum assets or securities in the domestic.

Development of new regulations
Measure of market performance with respect to their income from the risk they take. If the supervisor can create rules in line with the market so they can make the rules more effective and more relevant to the institutions that set.
The increasing globalization to improve the capital market needs to ensure that norms circumspection accepted internationally and are implemented consistently
Regulations only a part of the solution. Risk of the international financial intermediasi depends on several things such as ensuring minimum standards in the bankruptcy law, accounting and auditing standards and the obligation of transparency (disclosure).

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