Each country has its own regulatory regime and regulatory supervisory body to supervise financial activities. Discuss whether the global operations of banks adequately supervised by Basel Committee on Banking Supervision. Also, do supervisors have sufficient capability to prevent a global financial breakdown? (ESSAY-please provide many points to support ans. 500 words min.)

Every country has its own regulatory regime and there are different type of regulatory body which are continuously regulating the financial system in order to provide with the adequate management of the financial system which will be continuously regulating the liquidity along with credit availability and growth of the financial system,so it will be trying to always maintain certain rules and regulation which will try to eliminate the risk associated with any kind of financial collapse and Bank run and contagion in the entire economy.

The Basel committee of the banking supervision is a primary Global standard setter for prudential responsibility of bank to manage in respect of better risk adjustment of various Assets and it will be trying to proactively determine certain standard switch will be e helping the bank in order to setting minimum Capital requirement for the goal of minimization of the credit risk.

It has also been set up in order to helping the bank which are operating internationally to require a minimum amount of capital based on percentage of the risk weighted Assets and it will be classified according to the risk which are required to maintain emergency capital based on the classification so bank will be always trying to maintain a regular protection against economic uncertainty and it will be trying to adjust the banking regulation and banking practices and it will help to protect the bank and consumers and the respective economies so it will help the bank in order to eliminate the risk associated with high risk Assets and it will also help the bank in order to maintain with the better quality of net assets which will be present on the books of accounts and eliminating the risk associated with the non performing assets to large extent.

The banks are always the backbone of a particular economy and when they are working in respect to the international economy than they are lending and borrowing from the international body and there is a risk of international collapse, when the banks are not managed properly, so it is not just limited to the domestic economy but the it can spread outside the domestic territory of a bank and hence there need to be proper and proactive management of the operations and elimination of risk in advance and through risk adjustment of the Assets and maintaining a proper reserve which will be helping in order to to protect the consumers and other banks against the respective bank run, so it will eliminate the risk associated with the credit risk failure to a large extent and it will help the bank to function efficiently in respect to to International standard by maintaining higher Reserve Requirement and maintaining better capital adequacy ratio so it will help the bank in order to hedge against any kind of probabilities of collapse.