1. Financial systems can be classified as bank based or capital market based. Compare the major differences between bank based financial system and capital market based financial system

2. Bank M&A can create higher profits for banks by obtaining gains either in terms of efficiency or market power. Compare the difference between value creation through increased market power and through the improvement of bank efficiency.

3. The 2007-2009 financial crisis highlighted the importance of bank capital adequacy on financial stability. Explain the role of capital regulation on mitigating bank risk taking