Explain key banking concepts, such as liquidity and solvency, and their interrelationship by analyzing a bank’s balance sheet and income statements in the context of imperfect information.

Features of the Bank Recovery and Resolution Directive (BRRD) introduced in the European Union

Explain key banking concepts, such as liquidity and solvency, and their interrelationship by analyzing a bank’s balance sheet and income statements in the context of imperfect information.
Explain the importance and limitations of prudential regulation in preventing banking crises, including capital requirements and the Basle Accords (Basel I, II and III). Understand the key differences between micro- prudential and macro-prudential regulation and the concept of systemic risk.