Question 3: Part a) According to Casu et. al. (2015, Chapter 17), financial system development positively impacts economic growth the most in developing countries. Describe and explain four (4) reasons why developing countries experience this phenomenon.

Question 3:

Part a) According to Casu et. al. (2015, Chapter 17), financial system development positively impacts economic growth the most in developing countries. Describe and explain four (4) reasons why developing countries experience this phenomenon. (4 marks)

Part b) Describe the major catalyst for domestic banks to undertake many of the traditional functions of international banking. Evaluate the regulatory and compliance risks for domestic banks in international banking activity.  (6 marks)

Part c) What were the underlying causes of the failure of Silicon Valley Bank and Credit Suisse Bank? What changes in bank regulation would you recommend to prevent these types of failures from repeating? (10 marks)