Industrial Structure of Banking Essay Example | Topics and Well Written Essays - 1750 words

Industrial Structure of Banking - Essay Example Fourth, the relationships between the banks and the financial markets have also proven important determinants of the financial stability of the economy. Financial markets refer to the entity where stocks and other securities are traded(Anon., 2010). Banks are custodians of the investors’ funds. The financial markets generate prices whenever securities are bought and/or sold. When these banks want to make loans to the investors, they value these financial assets whereby the valuation and pricing of these financial assets are the main determinants of the financial stability of the economy. When prices are high, the banks are willing to lend more in the economy and this leads to the financial crisis in the economy since there is more money chasing few assets in the economy. On the other hand, when the prices are determined to be low in the financial markets, there will be a little amount borrowed hence high financial stability in the economy. Therefore, this links the relationshi p between the banks and the behavior of securities in the financial markets and how the relationship affects the financial stability. The other market structure is a cross-border listing, which refers to the process where banks stocks are listed in the securities market of other countries where it was not incorporated. These banks which are listed in other countries enhance the capital inflow to the economy. Too much inflow of these funds into the economy can lead to financial instability if not well monitored.

Reading response papers Essay Example | Topics and Well Written Essays - 250 words - 3

Reading response papers - Essay Example ecting these matters; but I will endeavor to describe, in the best manner in my power, what I have myself seen; and imperfectly as I may succeed in the attempt, I am fully aware that the account will appear so wonderful as to be deemed scarcely worthy of credit; since even we who have seen these things with our own eyes, are yet so amazed as to be unable to comprehend their reality. But your Majesty may be assured that if there is any fault in my relation, either in regard to the present subject, or to any other matters of which I shall give your Majesty an account, it will arise from too great brevity rather than extravagance or prolixity in the details; and it seems to me but just to my Prince and Sovereign to declare the truth in the clearest manner, without saying anything that would detract from it, or add to it. Hernan Cortà ©s’ introduction to his description of the city of Temixtitlan is designed to arouse Charles V’s interest, and to impress the monarch with the great value of the territory which the conquistador has obtained for him. Cortà ©s’ is obviously under great need to justify his unilateral actions in Mexico and seeks to obtain the king’s sanction. His account of the treasure in the city, the marvelous architecture, the cornucopia of products available in the numerous markets, the magnificent temples, pleasure houses and palaces, the enviable water supply system, the refinement of the natives, his estimation of the extent of Moctezuma’s domain and Moctezuma’s elaborate lifestyle, are all couched in the most extravagant terms. It is difficult to believe Cortà ©s’ claim that his account is â€Å"the truth in the clearest manner.† The excessive length of his descriptions of everything, ranging from the produce available in the marketplace to the birds and animals in the pleasure houses, can definitely be considered to be examples of â€Å"prolixity.† Cortà ©s is evidently keen that Charles V perceives Temixtitlan to be superior to any city