banking and devoplement

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Banking and Development

The benefits of equity market liberalisation far outweigh the costs. Carefully consider this statement with reference to the concept of financial integration.

What are the costs and benefits of equity market liberalisation?

Equity market liberalisation increases the rate of financial integration between emerging markets and international markets. Evaluate this statement and discuss the costs and benefits associated with this policy. 


Explain how financial fragility could increase following financial liberalisation. Explain the role of the institutional environment in lowering the probability of financial fragility. 


Why might financial liberalisation lead to weaker banking sectors? Explain the role of the institutional environment in lowering the probability of financial fragility.

Explain how financial fragility could increase following financial liberalisation. What might offset this and lower the probability of financial fragility? 


Foreign bank entry is a necessary condition for more competitive and efficient banking sectors. Discuss this statement and cite empirical evidence as support for your arguments. 


Foreign owned banks are more efficient than domestic owned banks. Evaluate this statement and cite empirical evidence to support your answer.

Foreign bank entry is a necessary condition for more competitive and efficient banking sectors. Discuss this statement and cite empirical evidence as support for your arguments.

Outline the arguments for and against bank privatisation and review the experience countries have had with bank privatisation to date.

A failure of state ownership does not imply private ownership yields better outcomes. Consider arguments for and against bank privatisation with reference to empirical evidence. 


State ownership of banks is inefficient by design. Explain the reasoning behind this statement and consider whether bank privatisation yields a more efficient outcome.