AYN 426 INTERNATIONAL CAPITAL MARKET LAW AND REGULATION
EXAMINATION MATERIAL SUPPLIED BY THE UNIVERSITY:
QUESTION ONE: – 1,000 words for 50 marks
The international financial regulatory community has negotiated three BASEL Accords through the Basel Committee on Banking Supervision within the Bank for International Settlements. The third of these is still being implemented, with some aspects still under consideration and development.
EXAMINE BRIEFLY the history of, and purposes for, the three BASEL Accords. In particular, NOTE the purposes for the most recent BASEL Accord.
SUMMARISE BRIEFLY the outcomes from the first two BASEL Accords.
FOCUS ON the difficulties and successes with implementation of the Accords and any unintended consequences that may have arisen as a result of their implementation. Accordingly, also NOTE any criticisms or doubts about the effectiveness or otherwise of the BASEL III Accord.
COMMENT ON any role the Accords may have had in contributing to the Global Financial Crisis that commenced in 2007 and note any commentary on the success or otherwise of the BASEL regime.
Students might refer to:
Related Articles:
· King, P. & Tarbert, H., 2011, BASEL III, An Overview , 30(5) Banking and Financial Services Policy Report 1.
· Alexander, G., Baptista, A., and Yan, S., (2013) “A Comparison of the Original and Revised BASEL Market Risk Frameworks for Regulating Bank Capital” 85 Journal of Economic Behaviour & Organisation 249
Related Websites and e-Articles:
· http://www.bis.org/publ/bcbsca.htm
· http://www.financialstabilityboard.org/
· “ BASEL III Basics ”
· “ The Basel III Capital Framework: A Decisive Breakthrough” (Save file to hard drive)
· “ Report to G20 Leaders on BASEL III Implementation ” (Save file to hard drive)
The answer to each question should commence on a new page. Answers should be styled in an essay format that provides descriptive, informational responses to the questions based on the student’s research findings.
Students must ensure that ALL work is properly referenced.
END QUESTION ONE
QUESTION TWO: – 500 words for 25 marks
The International Monetary Fund (IMF) was established under an international agreement reached during the Second World War. Despite the enormous changes that have taken place in the global economy since that time, the IMF continues to be an effective voice in the regulation of the global capital market.
DISCUSS briefly the creation, development and purpose of the IMF and its current role in the modern global economy, with specific focus on its input into capital market regulation.
In particular, BRIEFLY EXAMINE the IMF’s system of Special Drawing Rights (SDRs) and provide an example of the use made of these convertible currency instruments.
SPECIFIC mention must be made of any international agreements relevant to the IMF that have been entered into related to either the IMF or SDR’s.
Students might refer to:
Related Articles:
· Williamson, J., (2009) “Understanding Special Drawing Rights (SDRs)” Policy Brief, Peterson Institute for International Economics PB09-11, click: HERE
· Loxley, J. (2011) “Reflections on Change and Continuity at the IMF” 32(3) Review of International Political Economy 223
· Alessandrini, P. and Fratianni, M., (2009) “International Monies, Special Drawing Rights, and Supernational Money” Indiana University, click: HERE
· Lombardi, D. and Woods, N. (2008) “The Politics of Influence: An Analysis of IMF Influence” 15(5) Review of International Political Economy 711
Related Websites and e-Articles:
The answer to each question should commence on a new page. Answers should be styled in an essay format that provides descriptive, informational responses to the questions based on the student’s research findings.
Students must ensure that ALL work is properly referenced.
END QUESTION TWO
cont/...
QUESTION THREE: International Market Regulation – 500 words for 25 marks
The Interbank lending market is fundamental to the flow of liquid assets through the global prudential system. At the beginning of the GFC, an almost unprecedented situation arose with relation to this system which altered how governments and private entities viewed its importance.
Briefly DESCRIBE the ‘Interbank Lending Market’ and OUTLINE its function in the international capital market. Specific mention should be made of any major organisations that are involved in this market.
EXPLAIN BRIEFLY how difficulties in the Interbank Lending Market may have contributed to or exacerbated the effects of the global financial crisis.
Students might refer to:
Related Articles or Book/e-Books:
· Rochet, J-C., 2008, (Ed.), “Why Are There So Many Banking Crises? The Politics and Policy of Bank Regulation”, pp.126–58 (Ch.5): Tirole, J., “Interbank Lending and Systemic Risk”. Princeton University Press. [e-Book available online through QUT library.]
· Friedman, J., 2011, (Ed.). “Lessons from the financial crisis: causes, consequences, and our economic future”, Chapter 5: Kolb, R., 2011. "The Global Financial Crisis of 2008: What Went Wrong?" John Wiley & Sons, Inc, Hoboken, NJ, USA. [e-Book available online through QUT library.]
· Demiralp, S., Preslopsky, B., & Whitesell, 2004. “Overnight Internet Loan Markets” Staff of the Board of Governors of the Federal Reserve System, Click: HERE
· Mishkin, F., 2011. "Over the Cliff: From the Subprime to the Global Financial Crisis," Journal of Economic Perspectives, American Economic Association, vol. 25(1), pages 49-70, Winter, Click: HERE
Related Websites and e-Articles:
The answer to each question should commence on a new page. Answers should be styled in an essay format that provides descriptive, informational responses to the questions based on the student’s research findings.
Students must ensure that ALL work is properly referenced.
END QUESTION THREE
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[TOTAL MARKS = [(100 MARKS/10) x 4] = SCORE FROM 40 MARKS]