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  3. Banking organizations are highly geared, much more than commercial or industrial companies. They have custody of large volume of

Banking organizations are highly geared, much more than commercial or industrial companies. They have custody of large volume of

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问题     Banking organizations are highly geared, much more than commercial or industrial companies. They have custody of large volume of monetary items, which makes them vulnerable to misappropriation and fraud. They therefore need to establish formal operating procedures, well defined limits for individual discretion rigorous system of internal control. Banking organizations engage in a large volume and variety of transactions. This necessarily requires complex accounting and internal control system and widespread use of electronic data processing. Banking organizations often assume significant commitments without any transfer of funds. These items may not involve accounting entries and consequently the failure to record such items may be difficult to detect. And most importantly, the failure of a bank, unlike most commercial firms, affects more than the fortunes of its shareholders and creditors, and may destabilize the whole economy.
    Effective supervision of banking organizations is an essential component of a strong economic environment in that the banking system plays a central role in making payments and mobilizing and distributing savings. Strong and effective banking supervision provides a public good that may not be readily available in the marketplace. Along with effective macroeconomic policy, it is critical financial stability in any country. While the cost of banking supervision is indeed high, the cost of poor supervision has proved to be even higher.
    For all these reasons, banks throughout the world are generally accorded a higher degree of official, supervision and regulation than other types of businesses. At the same time, banks are also provided with important elements of official protection. For example, the central bank usually acts as a lender of last resort to protect commercial banks against a temporary liquidity drain. This protection is an important component of the official safety net bank stopping the banking system. Another major aspect of that safety net takes the form of deposit insurance fund to guarantee bank depositors that they will get their money back in the event of a bank failure.
A high degree of official supervision and regulation on bank organizations are important because
选项 A、The governments of many countries want to control banks
B、There are too many troubles in banking sector
C、It is crucial to stabilize the financial sector and the whole economy
D、The banks make much more deposit insurance fund
答案C
解析 文章第二段开关提到Effective supervision of banking organizations…in making paymentsand mobilizing and distributing savings．银行在发放资金和资金存储上起着至关重要的作用。只有选项C与此意相同。
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本试题收录于： FECT综合（现代金融业务）题库金融英语（FECT）分类
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