Countries around the world adopt bank regulation broadly consistent with the framework issued by the Basel Committee because

Question

BlackTom AI · Accepted Answer

The question asks why countries adopt Basel Committee bank regulation broadly consistent with its framework.
Option 1: 'many countries are bound by a treaty to adhere to the rules the Committee adopts.' This is not accurate in general. While Basel standards are highly influential and many jurisdictions implement them into national regulation, there is no universal binding treaty that compels all countries to adopt every Basel rule. Adoption is typically through national regulatory reform and voluntary alignment with international best practices, not due to a formal treaty constraint.
Option 2: 'it serves the interests of each country to fit in with international standards.' This answer reflects the practical motivation: aligning with international standards promotes financial stability, enables smoother cross-border banking operations, and helps countries access global financial markets. It captures the incentive structure—that jurisdictions benefit from consistency with widely accepted rules, even in the absence of a binding treaty.
In summary, the first option overstates the legal mechanism (treaty binding) and underestimates the voluntary and practical reasons for alignment, while the second option correctly highlights the strategic and beneficial incentives for countries to conform to Basel-inspired standards.

IFEPIA7022_001_2025_3 - Economics of Finance EOF Final - Dec 16, 2025

Countries around the world adopt bank regulation broadly consistent with the framework issued by the Basel Committee because

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Which of the following statements is false?

The net regulatory burden on financial institutions refers to:

The supervisory and regulatory activities of each Federal Reserve Bank in its district includes the authority to do which of the following?

Each Federal Reserve Bank has supervisory and regulatory authority over the activities of Blank and Blank located in their districts.

The Federal Reserve Bank has primary responsibility for the supervision and regulation of

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In the area of bank supervision, which of the following are functions of the Federal Reserve Banks? Examinations of state member banks Approval of member bank and bank holding company acquisitions Deposit insurance

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IFEPIA7022_001_2025_3 - Economics of Finance EOF Final - Dec 16, 2025

Countries around the world adopt bank regulation broadly consistent with the framework issued by the Basel Committee because

查看解析

登录即可查看完整答案

类似问题

Which of the following statements is false?

The net regulatory burden on financial institutions refers to:

The supervisory and regulatory activities of each Federal Reserve Bank in its district includes the authority to do which of the following?

Each Federal Reserve Bank has supervisory and regulatory authority over the activities of Blank ______ and Blank ______ located in their districts.

The Federal Reserve Bank has primary responsibility for the supervision and regulation of

Nationally chartered banks ("National Banks") are those chartered through the

In the area of bank supervision, which of the following are functions of the Federal Reserve Banks? Examinations of state member banks Approval of member bank and bank holding company acquisitions Deposit insurance

The regulation required under Basel II is more costly than that required under Basel III, due to the higher liquid assets requirements and the higher levels of primary capital.

更多留学生实用工具

希望你的学习变得更简单

Each Federal Reserve Bank has supervisory and regulatory authority over the activities of Blank and Blank located in their districts.