A1.(a)"The U.K.bank Northern Rock became the first high-profile casualty ofthe global financial crisis of 2007-2008 when it suffered its depositor runin September 2007".Reference:Shin,H.S.(2009)Reflections on Northern Rock:the bank runthat heralded the global financial crisis.Journal of Economic Perspectives 23:101-119.Analyse the liquidity problem and the systemic failure which caused arun on Northern Rock and was a key feature of the Global FinancialCrisis.(30 marks)(b)Identify the principal features of micro-prudential regulation.Examine whether the Capital Adequacy Requirements of Basel I andBasel II fulfilled this role.(30 marks)