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

Financial Markets - Essay moralIn the context of the supranational Community the most known fiscal regulators are the sideline 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 supervising of Financial Services across Europe. It has to be noted that international regulators have no power to inflict specific rules on countries internationally or to ask the local authorities to take measures in grade to support such activity (Backley, 2008, p.135)The term denomination intermediation refers to the readation of money by financial intermediaries ordinarily the banks (Jeucken, 2001, p.56) a clearer definition 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 account statements of i ndividuals 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 fortune is related 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