Credit Risk and Market Efficiency

by | Jul 17, 2023 | finance

 

Write a research project discussing a topic on International Banking System
The paper should follow the basic structure:
I. The paper should start with a short introduction/motivation section. Why should anyone care about your topic? Here talk about specifics, current events, politics, etc. (~1 pg). Be sure to establish a clear thesis (argument/focus) and lay out preliminary support you will reference throughout the next section.
– Use sources from reputable publications here (NY Times, Wall Street Journal, Economist, etc)
II. Next, you are expected to review the major contributions on the topic and the current state of the literature, citing at minimum five sources scholarly sources. This should be the bulk of your paper (~3-4 pgs). It is a literature review of your topic. If you have a specific topic (e.g. a specific trade deal, etc) then be sure to generalize your topic for this section. So if you were discussing NAFTA or Brexit, you would want to discuss recent literature on free trade agreements/areas for the literature review. Here you want to discuss general theories on your topic so that you can establish the necessary economic relationships.
– Use scholarly sources here (Journal Articles, Federal Reserve, IMF or NBER Studies, etc)
III. Extension. You just reviewed the literature on a specific subject. Here you should suggest an extension to the current literature (~.5 pgs). What is missing from the literature you reviewed (could be a new data set, case study, research methodology)?
IV. Conclusion. Wrap it up. Tie together the support presented above to call back to main thesis (~ .5 pg).
V. Reference Section that links to in-text citations. Use any citation format you choose (APA, MLA, etc), just be consistent throughout the paper. If you choose to, you can simply footnote within the text and forego this section.

Sample Solution

The international banking system is a complex and ever-evolving network of banks and financial institutions

Sample Solution

The international banking system is a complex and ever-evolving network of banks and financial institutions

Introduction

The international banking system is a complex and ever-evolving network of banks and financial institutions that facilitate the flow of money and capital across borders. It plays a vital role in the global economy, providing businesses and individuals with access to credit, investment opportunities, and risk management tools.

In recent years, the international banking system has come under increasing scrutiny in the wake of the global financial crisis. Regulators have sought to strengthen the system by imposing new rules and regulations, but there is still much debate about the best way to ensure its stability and resilience.

This paper will discuss the current state of the international banking system and the challenges it faces. It will begin by providing an overview of the system, its history, and its role in the global economy. The paper will then review the major contributions on the topic and the current state of the literature. Finally, it will propose an extension to the current literature and offer some concluding thoughts.

Literature Review

The literature on the international banking system is vast and growing. A number of scholars have contributed to our understanding of the system, including Charles Kindleberger, Robert Aliber, and Paul Krugman.

Kindleberger (1978) provides a comprehensive overview of the history of the international banking system. He argues that the system has evolved through a series of phases, each of which has been characterized by different patterns of lending and investment.

Aliber (1983) focuses on the role of banks in the international financial system. He argues that banks play a vital role in facilitating the flow of money and capital across borders.

Krugman (1999) provides a theoretical analysis of the international banking system. He argues that the system is inherently unstable and that it is prone to financial crises.

Extension to the Literature

The literature on the international banking system has made significant progress in recent years. However, there are still a number of areas where further research is needed.

One area where further research is needed is in the area of risk management. The international banking system is exposed to a wide range of risks, including credit risk, market risk, and operational risk. There is a need for more research on how banks can effectively manage these risks.

Another area where further research is needed is in the area of regulation. The international banking system is regulated by a complex web of national and international regulations. There is a need for more research on how these regulations can be effectively implemented and enforced.

Conclusion

The international banking system is a vital part of the global economy. It plays a key role in facilitating the flow of money and capital across borders. However, the system is also inherently unstable and it is prone to financial crises.

There is a need for further research on the international banking system in order to improve our understanding of its risks and vulnerabilities. This research will help to inform policymakers and regulators about how to best manage the system and prevent future crises.

References

Aliber, R. Z. (1983). The internationalization of banking. New York: Macmillan.

Kindleberger, C. P. (1978). Manias, panics, and crashes: A history of financial crises. New York: Basic Books.

Krugman, P. (1999). The return of depression economics. New York: W. W. Norton & Company.

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