Question 1:How does government regulation affect a bank’s expansion in the global market? What are the possible strategies to deal with those constraints? (250 words) Question 2:Evaluate Minsheng’s...

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  • Question 1:How does government regulation affecta bank’s expansion in the global market? What are the possible strategiesto deal with those constraints? (250 words)
  • Question 2:Evaluate Minsheng’s global expansionstrategy. How should Minsheng position itself to compete in the globalbanking industry? (300 words)
  • Question 3:Will the investment in the US enableMinsheng to know more about US banking practices that can be applied tothe Chinese market? (200 words)
Answered Same DayDec 20, 2021

Solution

David answered on Dec 20 2021
3 Votes
Question 1: How does government regulation affect a bank’s expansion in the global market?
What are the possible strategies to deal with those constraints?
Answer: Government regulations in the form of restrictions on bank activities of investment
and lending, entry of new banks, less of a role for government-owned banks are some of the
factors which affect a bank’s expansion in the global market. Other areas in which the banks
may be subject to government regulation are adequacy of bank’s capital, its liquidity-
position, options available to raise funds and regulations concerning its ability to
anch out
and expand through formation of holding companies. Needless to say, these factors have a
significant effect on the ability of a bank to expand operations in the global market. Such
egulations which encompass the entire range of activities of a bank, would definitely impact
its objective of expansion in the global market.
These constraints can be dealt with by various strategies which involve an integrated
approach so as to minimise the resources, financial or otherwise, required to comply with
egulations. Such efforts would not only soften the impact of the regulations but also help in
utilising them to the benefit of the banking sector. Moreover, the best possible strategy to
deal with such constraint is to make such regulation the core of business strategy for
expansion and to move within the framework of such regulations. It is most important to
understand the issues and concerns of the various stakeholders and plan the expansion
accordingly within the limits of the regulatory framework. An effective strategy for
stakeholder...
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