Answer the following problems.

problem 1)a) Describe the reasons for the existence of banks?

b) Examine the implications of the existence of financial intermediaries on the economy.

problem 2) Describe the nature of off-balance sheet business of banks, giving exs, and describe why there has been a growth of this type of activity and its consequences.

problem 3)a) What are the rational for banking regulation?

b) describe the main developments in the international harmonization of banking regulation and discuss the motivation for such international harmonization.

problem 4)a) Why do banks engage in the trade of international bank services?

b) ‘International banking developments is always good for the welfare of national economies ‘.Describe the statement.

problem 5)a) What are the major risks facing a retail bank in its traditional business of deposit taking and lending?

b) How can a bank manage the risks identified in (a).