summerize answers and develope hypothisis on answers

Summarize group answers and give a hypothesis of why individuals gave these answer and felt this way for each question (IQ1 through IQ7) based on the provided responses. (IP1 through IP9)

Each questions’ summarization and hypothesis must be 3 to 4 paragraphs long

IQ1: What are your thoughts of the G20s narrow measures?

(IP1) The measures adopted by the G20s are likely to threaten the stability. People are seeking credits to foster their economic development which will further increase revenue. When regulated, fewer people will have access to capital for investment hence economic instability. (IP2) The measure that most of the shadow banks take in offering credit has a potential to cause threat to the stability by failing to provide the key financial data required. It could also pose a threat by poor coordination of the finance for the G20 making it difficult for it to do proper measurement for the activities. (IP3) Shadow banking allows institutions to provide credit outside the regulated systems of baking. Therefore, it involves the activities of finances such as lending money by institutions that are not regulated, hence the risk of stability in the entire system. (IP4) Narrow measures of shadow banking have effects on stability since shadow banking has been there since the dawn of taxation system. They should implement tough measures towards this banking system. (IP5) Shadow banking allows institutions to provide credit under conditions which have not been regulated. Lack of regulation of institutions can compromise standards and result in consequential collapse. (IP6) Shadow banking has continued to be an economic threat to the world. Hence strict measures need to be devised to fight against the menace. The current measures by the G20 will facilitate increased shadow banking which will lead to economic instability. (IP7) Shadow banking allows institutions to provide credit under unregulated conditions or institutions that are not regulated. Failing to have regulations was a compromise a compromise to the standards that can cause consequential collapse. (IP8) Shadow banking has a threat to economic stability, and narrow measures are a threat too. G20 should enforce tough measures on shadow banking; the long-term effects could be more severe. (IP9) The measures put forth by the G20s and the world bank will threaten the stability of shadow banking. The role of these banks and in providing security for their customers will be affected by these narrow measures.

IQ2: What are your thoughts on the Growth of shadow banking and credit crisis.

(IP1) The increase in the number of investors seeking credits through these institutions will lead to a crisis. When more people have access to credit, there was a likelihood that an institution will hit its limits easily. (IP2) G20 has reviewed measures have been reviewed before being implemented against shadow banking. I think these narrow measures have little effects on stability that to an extent that we can’t notice. such narrow measures have little effects on the stability of the economies. (IP3) I think the growth of shadow banking was spurring warning to the credit crisis since the lenders are putting in place measures that will increase the security of their lending; consequently, decreasing the reduction in the overall loans availability. (IP4) The effects of shadow banking on the credit crises depends on the policies and banking system of each country or region. Some countries have unfavorable credit system while others are much better. Effects of shadow banking on credit depends on the banks, country or region about their regulations and policies. (IP5) I think the growth of shadow banking does not spur warning to the new credit crisis since the lenders are putting in place measures that will increase the security of their lending due to the pressure being mounted onto them by governments in different countries. (IP6) The growth indeed spurs warning of new credit crisis because countries and leaders will look for credits in an attempt to bring stability. As more countries look for credits, there will be a crisis. (IP7) In my opinion, the growth of shadow banking does not spur warning to the new credit crisis because of the measures that lenders are putting in place to increase the security of their lending due to the pressure being mounted onto them by governments in different countries. (IP8) Shadow banking does not spur any warning to the credit system since it has been there for a long time only that it was not hidden from the public eye. With the modern information systems and communication, were much aware of it but it doesn’t spur any warning. (IP9) The growth of shadow banking will spur new credit crisis because more people will flood in these institutions because of the provided narrow credit requirements. The flood of more people in need of credit will lead to crisis.

IQ3: What are your thoughts on Non-bank intermediaries.

(IP1) The non-bank intermediaries include the leasing, factoring, and venture capital companies to various types of contractual savings and institutional investors such as pension funds, insurance companies, and mutual funds. These have in the past provided the traditional financial support to investors. (IP2) The non-bank intermediaries carry on traditional functions and are even getting better 21st century was competitive, and the non-banking intermediaries are moving towards customer satisfaction. (IP3) Most of the non-banking intermediaries have carried out the traditional banking system effectively as evident from the services they provide to their customers. They deposit money and lender loans, generating profits and at the same time allowing circulation to grow economy. (IP4) Non-banking intermediaries do not understand the traditional banking functions and may not know when they carry them effectively or not. (IP5) Most of the non-banking intermediaries have carried out the traditional banking system effectively because they access capital which they use in leveraging with deposits, and then converting it that results to the growth of economy and generation of jobs. (IP6) The non-banking intermediaries have carried out their traditional banking functions. The increase in these intermediaries has created a healthy competition based on performance. Hence, there was improved services. (IP7) Traditional banking has been carried out effectively by the non-banking intermediaries through leveraging their capital with deposits and then converting it that results to the growth of economy and generation of jobs. (IP8) The traditional banking functions are not carried on effectively by non-banking intermediaries. Due to high competition and seek new customers, they forget these functions. (IP9) The non-bank intermediaries like insurance companies have provided customers with better services. These include the provision of credits and security to credits.

IQ4: Shadow banking was not inherently risky.

(IP1) These financial institutions pose little or no risks to investors because there was no security on credits. Therefore, investors are not exposed to risks of defaulting such as loss of their capital or security. (IP2) These institutions need to protect their customers and focus on winning more of them. These institutions are customer oriented and protect their assets. Therefore, I don’t think they are risky. (IP3) The institutions engaging in shadow banking have strict regulations under which they carry out their operations, hence avoiding the sequential level of risks involved. (IP4) Shadow banking has connections in every place and hold assets for rich and powerful. This keeps them running and thus have no risk to the legal banking and customers. (IP5) Shadow banking was an institution whose most operations are like the other institution only that it operates on unregulated grounds. However, they set their regulations under which they carry out their operations. (IP6) The shadow banking institutions do not reveal the identity of bankers. As such, external auditors cannot carry out effective auditing that would lead to an institution being charged with illegal money handling. (IP7) Shadow banking was a wide sector in which institutions lend money under unregulated conditions. The system was well–established in such a way that the system was regulating. (IP8) Shadow banking was not risky since government institutions protect them. (IP9) Shadow banking work on risky grounds because of the provision of unsecured loans. However, there are measures put forth on ensuring that debtors pay to settle their credits. This makes the institutions not regarded as inherently risky.

IQ5: Shadow banking facilitates unequal wealth distribution. Justify this statement.

(IP1) Shadow banking has been blamed for high interests on credits. As such, poor investors looking for capital for investment will be exposed high debts. (IP2) The aim of Shadow banking was to hide money and evade taxes, it was mostly used by the rich this makes their wealth grow more, so I think it was a contributor to widening the gap. (IP3) It was unfair to associate shadow banking with the deepening of the inequality levels in the society. Rather, governments are responsible for educating their citizens on available opportunities as well as equitable resources distribution. (IP4) Shadow banking has aided in the increase of the gap between the rich and the poor. I think this was one of the reasons why tough regulations should be put in place to stop it. (IP5) Most of the poor people have no access to the shadow banking institutions, hence disadvantaging them over the rich people. (IP6) Shadow banking was allowing government officials to loot resources from their countries and banking them with these institutions. As such, there are limited resources to be carried out economic development activities. (IP7) Most of the poor people have no access to the shadow banking institutions, hence disadvantaging them over the rich people. (IP8) If shadow banking was not there, the gap between the rich and poor would continue to widen; I don’t think it has a lot of impact on this. (IP9) The banks will offer credits to selected individuals irrespective of their plans. When their plans fail and do not settle debts, there will be a limit to some people offered these services hence unequal wealth distribution.

IQ6: The role of shadow banking was to increases what?

(IP1) In the current economic time, more people are looking for capital for investment. Lack of securities for these loans was leading them to shadow banks. As such, the role seems to increase. (IP2) Governments are increasing taxes to fit their budgets, people don’t like this and are hiding their money in shadow banks. (IP3) The role of the institution in the shadow banking sector continues increasing due to the changing patterns in the global markets that are calling for the development of measures that will enhance self-regulation. (IP4) People are getting richer and have not trust in the legal banking system. The legal banking system has been considered unfair to its customers and this where shadow banking comes to help. I think it’s a matter of trust. (IP5) The role of shadow banking institution was increasing due to the increasing self-regulation that actors in the sectors are putting in place. (IP6) Shadow banking has an increased role in securing customers’ resources. As the world bank and the G20s requiring institutions to provide their money sources as well as those of their customers. (IP7) Shadow banking institution offer credits under less strict measures to their customers. Also, the actors have self-regulation in the sectors facilitating control. (IP8) Governments and monetary institutions keep on censuring our financial activities. People don’t like being monitored especially in financial terms. Shadow banking was close to anonymous and that why their role was increasing. (IP9) The banks have an increased role in ensuring that resources are secure as well as successful distribution. When debtors fail to settle debts, the increased role will be to secure other money sources to pay their bankers.

IQ7: Shadow banking as an inevitable result of financial development. Justify this statement.

(IP1) In the current economic time, investors are looking for a less strict financial institution to provide them with credits. Shadow banks are the sole institutions with little or no risks. (IP2) People are getting rich more than ever. Shadow banking was a sign of this development since money circulation has increased. (IP3) Shadow banks provide finances at fairer deals than most of the traditional banking institutions, increasing their levels of customer attraction. (IP4) Shadow banking has a lot of implications, and financial development was just one of them. (IP5) Shadow banks are inevitable development as they provide their customers with finances at fairer deals than most of the traditional banking institutions. (IP6) Shadow banking will not facilitate economic development but rather economic sabotage on poor and developing economies. Since they provide avenues for looting and misappropriation, there are no chances that they will help in financial

development. (IP7) Many people prefer the shadow banks because they provide fair deals to people lending money from them as opposed to the traditional banking institutions. (IP8) Shadow banking was not a sign of financial development but rather a sign of mistrust on legal banking institutions and governments. (IP9) More people require credits. Since there was a shortage of security among the youths and startup persons, the only option remaining was the shadow banking.