International Banking
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Faculty of Business & Law
International Banking
Module Code：UGB 322
|Module Leader: Tim Zhou |Student Name: Sun Yufei |
|Workshop Tutor: Charlton, Helen |Student Number: 119026298 |
|Data: 3rd May 2012 | |
1. Introduction 3
Part A. 3
2.Potential Benefits of introducing the international banking system into the developing country 3 2.1 Enhance the foreign trade and foreign investment 3 2.2 Improve the management level and introduce new technologies 4 2.3 Improve the level of banking supervision 4
3. Risk of introducing the international banking system into the developing country: 5 3.1 Currency fluctuations risk 5 3.2 Risk of capital outflows 5 3.3 Risk due to operation failure 6 3.4 Risk of illegal operation 6 3.5 International conduction risk 6 3.6 Effect of “Cherry Picking” 7 3.7 Difficulty of regulation and banking supervision 7
Part 2 8
4. Regulation of International banking 8 4.1 Defect of Basel Capital Accord 8 4.1.1 Prone to have leak because the new agreement too refined 8 4.1.2 The Internal Rating-Based Approach，IRB too complicated and high implementation costs. 9 4.1.3 Attention on market risk and operational not enough 9 4.1.4 Information disclosure, the require more administrative burden to the bank that did not build up IRB 9 4.1.5 Framework for asset securitization cannot completely avoid capital arbitrage 10 4.1.6 The new agreement could lead to deterioration of the bank competitive environment 10 4.2 The need for improvement of International Bank regulation 11 4.2.1 Should continue to implementation Strengthen the supervision of systemic risks 11
Faculty of Business & Law
International Banking
Module Code：UGB 322
|Module Leader: Tim Zhou |Student Name: Sun Yufei |
|Workshop Tutor: Charlton, Helen |Student Number: 119026298 |
|Data: 3rd May 2012 | |
1. Introduction 3
Part A. 3
2.Potential Benefits of introducing the international banking system into the developing country 3 2.1 Enhance the foreign trade and foreign investment 3 2.2 Improve the management level and introduce new technologies 4 2.3 Improve the level of banking supervision 4
3. Risk of introducing the international banking system into the developing country: 5 3.1 Currency fluctuations risk 5 3.2 Risk of capital outflows 5 3.3 Risk due to operation failure 6 3.4 Risk of illegal operation 6 3.5 International conduction risk 6 3.6 Effect of “Cherry Picking” 7 3.7 Difficulty of regulation and banking supervision 7
Part 2 8
4. Regulation of International banking 8 4.1 Defect of Basel Capital Accord 8 4.1.1 Prone to have leak because the new agreement too refined 8 4.1.2 The Internal Rating-Based Approach，IRB too complicated and high implementation costs. 9 4.1.3 Attention on market risk and operational not enough 9 4.1.4 Information disclosure, the require more administrative burden to the bank that did not build up IRB 9 4.1.5 Framework for asset securitization cannot completely avoid capital arbitrage 10 4.1.6 The new agreement could lead to deterioration of the bank competitive environment 10 4.2 The need for improvement of International Bank regulation 11 4.2.1 Should continue to implementation Strengthen the supervision of systemic risks 11