In the U.S., banking regulation largely falls on the Federal Reserve, though various states and other federal agencies weigh in with rules and stipulations. Europe has its web of banking regulators as well, including the European Banking Authority.
The EBA started operation in 2011 as a way of insuring the viability of the European financial system. A similar role was formerly filled by the Committee of European Banking Supervisors, but following the financial crisis of 2008, European officials launched a reorganization that eventually culminated in the creation of the EBA.
It's like if you owned a store and your security guard fell asleep, and while he was asleep, thieves tiptoed out with all your merchandise. You'd fire the guard and bring in someone else. So...the financial crisis happened, the CEBS got fired, and the EBA was brought in to make sure no one else...snuck out with the goods.
The EBA runs stress tests on banks and generally makes sure that financial institutions are able to withstand another financial crisis.
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Finance: What is LIBOR?21 Views
Finance allah shmoop what is a lie Boer No it's
not the result of these two zoo animals Mating lie
Boer stands for london interbank offering rate And it's basically
just the british quote fed unquote central bank rate reflecting
the absolute lowest interest rate at which the british banking
system well loan money to its best Most well heeled
customers like you know sainsbury's and bp and barclays and
the guy who plans royal weddings So library is the
best or cheapest rate at which the british banking system
will lend money Most loans come at some premium to
lie before i risk your loans might come in something
like on a live or plus fifty basis points or
something like that so that if lie boris currently quoted
at two point two five percent interest well then the
lie bore plus fifty loan would be loaned out at
two point seven five percent interest And libras important has
been around forever and much of the world uses it
as thie pegging number two then add some risk percentage
on top of it when they quote loans to whoever
they're loaning money to That's basically it No need for 00:01:08.819 --> [endTime] any wild animals teo you know get wild
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