INTERNATIONAL BANKING AND FINANCIAL MARKETS TWO
Part Two addresses two subjects. First, I provide an overview of the public institutional framework in which financial institutions and financial services operate. These institutions mainly emanate from the 1944 Bretton Woods Conference at the end of WWW II. Although the Bretton Woods system collapsed in 1971, the existing international monetary system reposes on the vestige of Bretton Woods.
The Bretton Woods system established the US dollar as the world's reserve currency and established the International Monetary Fund and the World Bank. The latter institutions are effectively controlled by the United States. Bretton Woods cemented the United States as the centre of the new financial order, a privilege the US continues to exercise.
The international banking system operates within the larger framework of the international monetary system. In addition, international banks are subject not only to the international banking system but also to political agenda, set by the United States, often in conjunction with the G7 and the European Union. It is important to understand this economic authority.
Part Two also introduces two issues in the European Union financial space: Credit Institutions and the Single European Payments Area [SEPA]. The term "credit institution" refers to banks. SEPA simplified cross-border payments in the Eurozone. The first PPT provides a restatement of banks, their social utility, and risks posed.
The second PPT introduces the framework of the European System of Financial Supervision. The main concepts, institutions, and legislative acts are noted. The focus is upon the EBA and its mission to create the "single rulebook". It also discusses the EU passport in terms of banking, investment firms, and investment funds.
The Third PPT summarises Basel III Tier 1 and Tier II capital requirements for banks. Links to EU legislation are provided.
I provide a link to a YouTube video of Credit Suisse
explaining the activities of this international bank as well as its mis-dealings. It calls into question the conventional understanding that banks promote growth in the "real economy".