Question 1:How does government regulation affect a bank’s expansion in the global market? What are the possible strategies to deal with those constraints? (250 words) Question 2:Evaluate Minsheng’s...

Question 1:
How does government regulation affect a bank’s expansion in the global market? What are the
possible strategies to deal with those constraints? (250 words)
The government regulation increased transparency and competition in the global
banking system by encouraging comparability and high banking quality. The market
forces played an vital role in the establishment of effective international banking
regulations. The international banks are expanding externalities by offering banking
services in the international markets. Government set the capital adequacy
requirements for the banks measured by the capital asset ratio across the banks the
banks are expanding by maintaining the minimum capital balance. The market forces
indicate that the banks choose to hold higher level of capital by improving the global
depositors to attract more funds. However, the public sector banks are less sensitive to
the competition; several public sector banks get government support and they have
pressure of market forces. The bank rating system enrages competition within the
banking industries thus; they focus more on the growth and expansion strategies. The
capital adequacy ratio prevents the banking system from the solvency and liquidity
risks. The banks are providing deposit insurance so that the depositors motivated and
they are ready to put more money into the banks as it riskless. The microeconomic
conditions are positively affected the banks in terms their performance and
capitalization. Several banks have been expending their branches in the foreign nations.
Hence, the government regulations play an vital role in the global banking functions and
in the global banking expansion. The possible strategies to deals with those constraints
are as follows:
 Controls over the interest rates
 Investment rules of the financial institutions
 Line of business regulations among the financial instructions
 Rules for entering of foreign financial institutions
 Control on the...