Financial Markets Essay Example | Topics and Well Written Essays - 1000 words - 1

Financial Markets - Essay ExampleIn the stage setting of the International Community the most known financial regulators be the following ones a) the International Organization of Securities Commissions also known as IOSCO, b) the Basel Committee on Banking Supervision and c) the Committee of European Securities Regulators for the supervision of Financial Services across Europe. It has to be noted that international regulators have no power to impose specific rules on countries internationally or to ask the local authorities to backpack measures in order to support such activity (Backley, 2008, p.135)The term prenomen intermediation refers to the transformation of money by financial intermediaries usually the banks (Jeucken, 2001, p.56) a clearer description of the above term is provided by Neave (1998) in accordance with the above researcher, the term denomination intermediation reflects the following activities of banks a) the gathering of money through the accounts of in dividuals the amount deposited in each account is usually small and b) the lending of this amount money gathered the amounts given as loans are usually high (Neave, 1998, p.260). Towards the same direction, Brigham (2008) notes that denomination intermediation is a term reflecting the process by which financial intermediaries transform funds provided by savers into funds used by borrowers (Brigham, 2008, p.101).Liquidity risk is link with insolvency at the following point in cases of high liquidity, the risk of insolvency is decreased on the other hand, in low liquidity, the risk of insolvency is increased it is in this context that the above two risks have been characterized as linearly coupled processes (Matz et al., 2007, p.174). At the next level, liquidity can have a series of different aspects including the