Search for over 100,000 study notes and past assignments!



Download study resources by swapping your own or buying Exchange Credits.



Study from your library anywhere, anytime.

International Banking Mid Semester Study Notes - Weeks 1 - 4

FINS3650 - International Banking

30 Pages Complete Study Notes Year: Pre-2018

Why do we need banks? • Asset transformation (From small money to big money) 4 Functions of a banking system • Transformations o Assets o Credit risk o Maturity o Liquidity Week 1 Reading (Essence of banking) • Public’s ex-ante demand for liquidity at par is greater than the public’s ex post demand • Banking systems exist because they can meet the ex-ante demand, but never have to pony up ex-post o D: Pony up – pay up • Two principles for existence of banks o 1. The genius of banking is maturity liquidity and quality transformation: holding assets that are longer, less liquid and of lower quality than the funding liabilities o 2. A banking system is solvent only if it is believed by the public to be going concern.  To implement P.1, you need to P.2 otherwise bank run (Panic, no lender of last resort, no deposit insurance)  Applies in both conventional and shadow banking • If what you’re doing is Banking = Joint venture with the public sector • If you engage in banking with potential to cause systemic risk, you require regulatory supervision and meet capital requirement. • Shadow Banking o Earn the net interest margin associated with maturity, liquidity and quality transformation of conventional banks, but without the regulatory burden of convention banks  (E.g regulatory capital requirement) o To fund the assets  Create information-insensitive liability through money market instruments such as repos and commercial paper • QUESTION

This document is 50 Exchange Credits

More about this document:

This document has been hand checked

Every document on Thinkswap has been carefully hand checked to make sure it's correctly described and categorised. No more browsing through piles of irrelevant study resources.

This is a Complete Set of Study Notes

Complete Study Notes typically cover at least half a semester’s content or several topics in greater depth. They are typically greater than 20 pages in length and go into more detail when covering topics.

What are Exchange Credits?

Exchange Credits represent the worth of each document on Thinkswap. In exchange for uploading documents you will receive Exchange Credits. These credits can then be used to download other documents for free.

Satisfaction Guarantee

We want you to be satisfied with your learning, that’s why all documents on Thinkswap are covered by our Satisfaction Guarantee. If a document is not of an acceptable quality or the document was incorrectly described or categorised, we will provide a full refund of Exchange Credits so that you can get another document. For more information please read Thinkswap's Satisfaction Guarantee.

Academic Integrity
Studying with Academic Integrity

Studying from past student work is an amazing way to learn and research, however you must always act with academic integrity.

This document is the prior work of another student and has been made available to plagiarism detection tools. Do not copy from this work. Understand how you can responsibly use this work by visiting ‘Using Thinkswap resources correctly’.

Claim a Bounty

International Banking Mid Semester Study Notes - Weeks 1 - 4 - Page 1
Page 1/30
Page 1/30
International Banking Mid Semester Study Notes - Weeks 1 - 4 - Page 15
Page 15/30
Page 15/30
International Banking Mid Semester Study Notes - Weeks 1 - 4 - Page 22
Page 22/30
Page 22/30

Similar documents to "International Banking Mid Semester Study Notes - Weeks 1 - 4" avaliable on Thinkswap

Documents similar to "International Banking Mid Semester Study Notes - Weeks 1 - 4" are suggested based on similar topic fingerprints from a variety of other Thinkswap Subjects

Browse UNSW Subjects


High School