Question 1. Bank M&A can create higher profits for banks by obtaining gains either in terms of efficiency or market power. Compare the difference between value creation through increased market power and through the improvement of bank efficiency
Question 2. The 2007-2009 financial crisis highlighted the importance of bank capital adequacy on financial stability. Explain the role of capital regulation on mitigating bank risk taking.
Question 3. Financial systems can be classified as bank based or capital market based financial systems. Compare the differences between bank based financial system and capital market based financial system.
Question 4. Since early 1990s, many European countries have witnessed a reduction in the number of banks. M&A played an essential role during this process. Earlier banking literature highlighted the following key determinants of bank M&A: the target operating performance, the capitalization of the target, the prospects for future growth, bank size and industry concentration. Explain these key determinants of bank M&A in detail
Question 5. Compare the different business models between commercial banking and investment banking.
Question 6. What are the driving forces of modern financial crisis?
Question 7. Explain the relationship between economic capital and regulatory capital in banking.