Question 1The financial crisis that affected the entire world has become the biggest shock to the global financial system and the financial markets of the United States and the Europe were mainly affected. Underlying weaknesses in financial regulation have been seen as one of the causes of the global financial crisis. Since the current crisis (2007-2008) is blamed on regulation, it is appropriate to consider that the cause lies in Basel I and Basel II. However, Basel II was not fully implemented before the crisis since it entered into force in January 2008 in the EU and since April 2010 in the United States. (The Larosière Group, 2009). Additionally, if Basel II had been fully implemented, it could help prevent the crisis or at least mitigate it, but after extensive research, the Basel III measures were designed in terms of liquidity, leverage and of capital to protect the economy from the crisis. The global Basel III standards are to be fully implemented by 2019. According to www.basel-iii.worldfinance.com “Basel III and related measures taken by national and supranational regulators will force banks to save a base of much larger capital – in effect, a foundation stone of solid assets designed to withstand sudden market disruptions. In general, Basel III will force banks to become smaller relative to the size of their national economies. Lower levels of debt – the capital-to-assets ratio – will become mandatory. And they must have greater liquidity reserves available to deal with temporary difficulties. This is why the banking sector is facing difficult times today. Regulation is only part of it, but compliance is an important part. According to Forbes.com, these complex and interrelated challenges will be critical to banks' ability to return to and sustain high performance. "However, Forbes.com estimates that for banks and others...... middle of paper ...... before being processed. There are two clearing sessions per day: the first session clears new checks while the second exchange returns them Final settlement takes place on the participants' accounts held at the Central Bank via UAEFTS on the same day (https://globalconnections.hsbc.com/downloads/treasury_management_profile-ae.pdf. )Reference list https://globalconnections.hsbc.com/downloads/treasury_management_profile-ae.pdf http://www.bankofcanada.ca/core -functions/financial-system/oversight-designated-clearing-settlement-systems/canadas -major-payments-systems/general-information/ http://www.centralbank.ae/en/index.php?option=com_content&view=article&id =69&Itemid=108 http://www.bankofcanada.ca/core-functions/ monetary-policy/framework/ http://www.bankofcanada.ca/about/history/ http://www1.worldbank.org/finance/ assets/images/UnitedArabEmirates_ROSC.pdf