Financial Services Coursework titles Essay Example | Topics and Well Written Essays - 2250 words

Financial Services Coursework titles - Essay ExampleMany good deal shed suggested several things however one recommendation with which most of the analysts would agree is to go beyond micro-based approach to macro-based approach. This means that the approach needs to be changed from an individual view to the overall market perspective. In summing up to this, it has been criticized that the role of financial institutions and financial regulations were insufficient in predicting and identifying such a major change in the economic condition of the country, at the time when the thrift was going into recession. There has been a growing misgiving that a macroprudential approached needs to be adopted in order to make the economy more stalls and strong. Macroprudential indemnity is defined as a concept in the banking regulation which defines about the financial asymmetry in an economy and how these instabilities can be prevented through public insurance policy. Analysts have claim ed that a purely microprudential perspective is not satisfactory enough to chief(prenominal)tain the stability of the economic condition. ... It has also been predicted that the impact of financial crisis would have been a lot less if macroprudential policy would have been appropriate and the gap between the macroeconomic policy and regulation of individual financial institutions would have been narrower. After the financial crisis, analysts have recommended that prudential regulatory fabric also needs to be recreated so that it would be more focused on the financial administration so that such crisis do not occur again and the economy is able to recover from its position. In addition to this, the other main objective would be to ensure that the financial institutions do not levy undesirable costs on the society just like the cost that the overall society had to declare because of the new-fashioned financial crisis (Bank of England, 2009). MACROPRUDENTIAL POLICY Macroprudentia l policy helps in identifying the loopholes that occur in the banking regulation because of which chances of financial asymmetry occur in the country. Not only this, but macroprudential policy helps in how to reduce these instabilities in the economy and it talks about preventive measures through which such economic crisis do not occur again. Macroprudential policy tends to complement microprudential policy and macroprudential policy interacts with different types of public policy which influences the financial stability of the economy. After the recent crisis, analysts have demanded a clear division between the two terms macroprudential policy and microprudential policy. However the main objective of the policies would remain the same i.e. to minimize the risk of the economy. Many people demanded to have new pose of macroprudential policy tools in order to make the