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2. (a) Discuss the advantages and disadvantages of regulating the banking system. (10 marks) (b) Explain the problem of pro-cyclicality arising from the regulation of
2. (a) Discuss the advantages and disadvantages of regulating the banking system. (10 marks)
(b) Explain the problem of pro-cyclicality arising from the regulation of the banking system and discuss solutions to this problem. (15 marks)
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