BUS614: International Finance

While you read this page, think about what the key financial institutions are and the role they play in the process of financial intermediation. How do each of these financial institutions differ from one another?

As you have seen earlier, there are many different financial institutions. Some are depositary, while others are non-depository. Before delving deeper into the difference between the two, it is important to probe how banks came into being and what kind of services they offered. When and where was the first bank established?

Central banks determine currency exchange rates and interest rates, among others. These institutions play a major role in ensuring and promoting the financial stability of a given country. In the US, the role of the Central Bank is delegated to the Federal Reserve. Here, you will learn more about the Federal Reserve and its structure.

What is the difference between central banks, investment banks, and commercial banks? What is the relationship between the Federal Reserve and other central banks?

While reading this, keep in mind what you learned earlier about the Fed and its structure. Here you will learn more about the different branches of the district banks and what they do. You will also come to know about the ECB and how it operates. What does central bank independence mean?

Basel recommendations were enacted to help evade any financial malpractice that could negatively affect the national and international economy. It is important to keep up to date with the latest recommendations. This reference will elaborate on capital adequacy and the capital requirements in the US. What banks in the US are subject to comprehensive capital analyses and supervisory stress?