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International Banking Law - Doc

   

Added on  2021-01-02

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INTERNATIONAL BANKINGLAW

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Rationale behind regulations which enforced to control banking activities in internationalmarket.....................................................................................................................................11.2 Scope of regulations.........................................................................................................21.3 Significance of laws which lay impact on banking activities in international market.....3TASK 2............................................................................................................................................42.1 Rationale behind use of money laundering duties which are imposed on banks.............42.2 Effectiveness of money laundering duties which are imposed on banks.........................5TASK 3............................................................................................................................................63.1 Main forms of loan structures which are used in financial sector....................................63.2 Role of law structures in banking.....................................................................................73.3 Effectiveness of decision making and policy which facilitate finance and loan activities.. .7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONInternational banking laws are enacted by the UK government to protect and controlforeign banking activities with regard to domestic proceedings and changes. Further, it is withthe motive of protecting consumer’s interests against fluctuating interest rates on bank loans. Thereport will evaluate the reason behind international regulations which are enacted to controlactivities of bank in foreign markets. In addition, it will outline the use of money launderingduties and loan structures which are used in financial sector. Thus, it will identify effectivenessof policies and decision making which assist in facilitating loan and financial activities ininternational market.TASK 11.1 Rationale behind regulations which enforced to control banking activities in internationalmarketRationale behind imposing laws is to control banking activities and money transfers ininternational market. It assists in protecting interests of bank against crime and disguisedactivities (Klioueva, Rademaker, and Huitinga, 2018). There are enormous activities that arebeing carried out within banking and to have proper balance between all functions andoperations, there are various factors such as different regulations that are essential to have aproper control over these. The basic forte of enforcing regulations for managing banking activities and operations ininternational market is that it provides stability along with maintaining the safety concerns(Cranston, 2018). It is important because the capital requirements of these regulations can helpthe banking sectors to maintain competitiveness in the international market (Manjula, andShanmugan, 2016). There are various schemes associated with these regulations that have been implemented in orderto avoid bank runs. Therefore, regulations are considered as one of the important measuresneeded to be implemented properly so that the functions and operations of international marketcan seem easy and possible enough to control and manage all factors and activities of the bank.Capital Adequacy Ratio (CAR) also plays an important feature of the regulations becausethere can be various number of depositors dealing with different amounts so it helps in providingsafety and security to these people for having trust of their money to be safe (Agarwal, Luccaand Trebbi, 2014). The regulations have been subjected with accordance with the government1

and may involve different factors such as some needs, restricting features, guidelines etc. Theforte of these regulations creates a sort of transparency within all the functions so that no sort offraud can take place. Regulations play a very major and important role to ensure that all processes and activitieswithin banking sector in international markets may perform effectively and successfully, whetherit is about the public or social requirements of people, or implementation of proper regulationscan help the banking industry to maintain a balance between different functions. 1.2 Scope of regulationsThe source of governing International-banking laws is Financial Services and MarketsAct 2000 (FSMA). The three main regulators of UK banking operations are, PrudentialRegulation Authority (PRA), Bank of England and Financial conduct authority. The scope offoreign banking regulations is on prudential matters, conduct of business and authorisation. Theregulations are enforced according to international banking activities like, market abuseregulations that are (EU) 596/2014 on market abuse (Banking regulation in the UK: overview,2017). This law helps the banking institution in protecting finance activities from new marketoperations, platforms and changing dynamics of financial system. Further, there is Short SellingRegulation 236/2012 which helps in protecting short selling international banking activities andcredit default swaps.The scope of these laws and regulations is wide enough because in the absence of properlegislations, various types of discrepancies may occur within different activities of the banking.Also, in situations where laws and regulations involves all the standard factors and issuesassociated. Therefore, the involvement of efficient policies, frameworks and procedures can helpin maintaining a balance because banking sector is considered as one of the major factors formaintaining economy and there are various types of different carrier opportunities available fromthe same (Besley, 2015). Therefore, it can be considered that it is essential to focus and followeach single regulation to help in managing the economic status along with other necessities ofpeople. Considering all the elements of regulations and laws is one of the essential features to beconsidered within banking sector because it helps in an overall managed and balanced set ofoperations (Paulet, Parnaudeau and Relano, 2015). 2

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