Investment Banking: Linkages to the Real Economy and the Financial System
19 Pages Posted: 14 Mar 2015
Date Written: March 12, 2015
Investment banks play a key role in capital markets and contribute to the efficient functioning of financial markets. As demonstrated in the recent financial crisis, however, investment banks can create and propagate risks in the financial system given their scale, as well as the interconnected and complex nature of their activities. Recognising investment banks’ systemic importance, a number of international regulatory initiatives have come into force since the onset of the recent financial crisis.
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