Key / Important: understand the economic issues, explain economic theories that apply, and provide some visual data to show the issue in deeper details. Simple English and could be easily understood. No plagiarism.
Font: Arial 11
Pages: 15 excluding titles, abstract, and bibiliography
Format: Thesis format with title page, abstract, chapters, conclusion, bibliography, etc.
Sources: 5 sources please also refer to Admati & Hellwig
Topic: Bank regulation and its costs and benefits
There is a consensus that Bank regulations are necessary for the stability of the financial systems. Three main tasks but additional interesting analysis and insights would be good — something that every one could relate to:
1) Explain 5 reasons (e.g., economic reasons/theories) why banks need to be regulated. Also explain theories of bank instability and how regulating banks can alleviate such instabilities.
2) Explain and understand the most important elements of the current banking regulation norms (viz. Basel III brief background, main components such as capital regulation, liquidity regulation). Review and explain costs and benefits of the banking regulation for the economy lining with the theories of why banks need to be regulated. Discuss as well the empirical literature on the impact of bank regulations.
3) Conclusion also touching on sufficiency of the bank regulation
