Please enable JavaScript.
Coggle requires JavaScript to display documents.
CHAPTER 6 ISSUES IN INTERNATIONAL BANKING (SUBPRIME CRISIS (:<3…
CHAPTER 6
ISSUES IN INTERNATIONAL BANKING
INTERNATIONAL BANKING EVOLVEMENT.
The banking industry has been undergoing major consolidation in recent years,with a number of global players emerging through successive M&A.
Strategy and development of international banking system change every time
**The forms that this collaboration could take are :-
Consortium bank
Offshore banking
Cross-boarder banking
Connected Bank.
ASIAN FINANCIAL CRISIS
Two assumption could explain the causes of the Asian economic,currency and financial crises.
1)Firstly,sudden shifts in market expectation and confidence were the key source of the initial financial turmoil,its propagation over time and regional contagion. The crisis reflected structural and policy distortion in the countries of the Asian region.
Secondly,fundamental imbalance caused the currency and financial crisis in 1997.When the crisis is started,market overreaction cause the plunge in asset price and economic activity to be more severe than warranted by initial weak economic conditions.
THE ROOT OF THE ASIAN CRISIS
1)The root focus is in the context of regulatory inadequacies and close relations between public and private banking and financial institution.
SUBPRIME CRISIS
:<3: 4)HISTORICALLY LOW INTEREST RATES
:<3: 5)HOUSING MARKET CORRECTION
:<3: 3)HOUSING BUBBLE
:<3: 6)THE RISE OF SUBPRIME LENDING
:<3: 2)ROOTS OF THE SUBPRIME CRISIS
:<3: 7)DECLINING RISK PREMIUMS
:<3:1)INTRODUCTION
:smiley: Subprime loan referred as near-prime ,non-prime and second -chance landing.
:smiley: which is they making loan to people who have difficulty maintaining the repayment schedule.
ISLAMIC BANKING ISSUES
some issues are identified here that may help consolidation and growth of islamic banking.
Islamic banking started in earnest in the 1970 with personal initiatives of the concerned Muslim to address the problem for riba.
Among the common issue:-
:<3: 4)Pricing formula for Islamic Financial Products
:<3: 5)Public Awareness
:<3: 3)Modus operandi of financial instrument and documentation
:<3: 6)Training of Banking Professional
:<3: 2)Vocabulary of Islamic banking
:<3: 7)Shariah Audit instead of reliance on Shariah Supervision.
:<3:1)Standardization
:<3:8)Finance gap between Islamic banks and Small medium enterprise (SMEs)