Financial Stability
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 87 rapid-fire Q&A cards.
Define financial stability per Mishkin.
Financial system ensuring lasting efficient allocation of savings to investments without major disruptions.
What triggered the active phase of the 2008 crisis?
BNP Paribas suspension of hedge fund withdrawals on 9 August 2007 citing liquidity evaporation.
Which act's repeal removed the wall between investment and depository banking?
Glass-Steagall Act repeal in 1999 allowed universal banks to take opaque trading risk.
Name the US post-2008 financial stability framework.
Dodd-Frank Act (2010) created FSOC, OFR, and BCFR for systemic risk monitoring.
What is the UK's twin peaks supervisory model?
Bank of England houses prudential regulator and Financial Policy Committee for macro-prudential oversight.
Which council is the apex body for financial stability in India?
Financial Stability and Development Council (FSDC), established December 2010, headed by Finance Minister.
What does the Board for Financial Supervision in India supervise?
Commercial banks, FIs, NBFCs, UCBs, primary dealers using CAMELS/CALCS rating systems.
Name the early warning signals framework widely used post-1997.
Kaminsky, Lizondo, Reinhart (KLR) framework groups EWS under ten broad vulnerability heads.
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