To Restrict Or Not To Restrict: A Comparative Study Between Financial Activities Allowed To Be Carried Out By Financial Institution In Canada And The Us
To Restrict or not to restrict: a comparative study between financial activities allowed to be carried out by financial institution in Canada and the US
By
ACKNOWLEDGEMENT
I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.
ABSTRACT
This study will provide the comparative analysis between the financial activities allowed to be carried out by financial institution in Canada and the US should be carried or not. Besides the fact that the U.S. financial crisis has caused serious problems within the country, he influenced the entire world economy and caused the global financial crisis. The aim of the study is to provide the comparative study between financial activities allowed to be carried out by financial institution in Canada and the US. This research is founded on the secondary data. The research encompasses the publications, articles and similar studies accessible on the internet. In recent, financial crises in US demonstrate how the financial institutions are vulnerable. After the collapse of housing market banks in US were hit with massive loans and repossessed assets houses in most cases. The study has certain limitations: this study is based on comparative analysis of only two countries but if we analyze the effect of recession it affected the financial system of the whole world. The recommendations for the study are that there is a need of more policies to be developed which can save the countries from massive destruction.
TABLE OF CONTENTS
ACKNOWLEDGEMENTII
ABSTRACTIII
LIST OF FIGURESVI
CHAPTER 1: INTRODUCTION1
Definition of Topic1
Background of the Study1
Significance of the study2
Research Aims and objectives3
Research Questions3
CHAPTER 2: LITERATURE REVIEW4
Recession in USA4
Financial institutions activities6
Supervisory regime financial institutions in both countries7
Role of financial institutions9
Financial institutions and Laissez-faire approach10
Regulatory bodies and their level of cooperation12
Functioning of financial activities13
Regulation for Credit rating agencies16
Financial regulations in both countries21
American Financial laws21
Canadian Financial laws26
CHAPTER 4: DISCUSSION33
Evolution of banking regulation in the US33
Glass Stegall Act33
Gramm-Leach-Bliley35
Dod Frank Act37
Housing Sector Crises38
Community Reinvestment Act38
Related Cases41
McCulloch vs. Maryland41
Watters v. Wachovia bank43
Cuomo v Clearing House Association, LLC43
Legal factors which lead to success of the Canadian Banking System45
CHAPTER 5: CONCLUSION49
Introduction49
Brief overview of reviews50
Limitations of the study52
Suggestions for further research53
Recommendations54
BIBLIOGRAPHY57
APPENDICES61
LIST OF FIGURES
Figure 1: Implementation of Basel
Figure 2: Regulatory Leverage ratios
Figure3: Capital Asset Ratio
Figure 4: Housing in both countries
CHAPTER 1: INTRODUCTION
Definition of Topic
This study will provide the comparative analysis between the financial activities allowed to be carried out by financial institution in Canada and the US should be carried or not. The scope of the study is based on the recession in US in 2008 and the consequences it laid on the financial sector including Banks. There were many loopholes created at that time which need to be identified. There were many policies used which were learnt from the past crises and these policies led to the changes. The study would also be based on defining the American Financial laws and the Canadian Financial Laws. It will further elaborate the legal implications of financial activities and how these function in both of the ...