Tag Archives: Liquidity
GenNex Public Banking System in USA
The thought for this post occurred thanks to the article on “Economic struggles spur calls for consideration of public banking” by Tracy Loew in ‘USA Today’ recently.
More and more states in the USA are joining the bandwagon and are...
Investment banking and revenue pressures – ways to go
Setting: One of the purposes of any business is to make money. And banking is no exception to this cardinal objective of any business.
Normally the bank’s income portfolio comprises fund based income and fee based income.
Fund based income...
Investment triangle – three compromising objectives
Any investment decision will be influenced by three objectives – security, liquidity and yield. A best investment decision will be one, which has the best possible compromise between these three objectives
Individually these objectives are...
Principles for sound stress testing practices in banks
According to Bank for International Settlements, stress testing is an important risk management tool that is used by banks as part of their internal risk management exercise. It is especially important after long periods of benign economic and...
Risks associated with investments
In any investment, an investor is exposed to several kinds of risks. The risks associated with investments are liquidity risk, market risk, credit risk, operational risk, prepayment risk and extension risk. If the investor decides to go in for...
Role of central counterparties and processing of OTC derivatives
This post makes an attempt to cover the role of central counter-parties and processing of OTC derivatives in four parts as under:
Part I – All about Central Counterparties
Part II – Best practices framework for CCPs
Part III – Some loud...
Security Lending Business
Concept of Security lending
Security is an asset or third party commitment accepted by the security taker to secure an obligation of the security provider. In theory, cash is the perfect security. The assets traditionally used as security, such...
Enhance the Quality of Financial Regulation – the Need of the Hour.
The purpose of any regulation is for solving problems that stakeholder or business alone cannot solve, as well as for making trade-offs among different objectives.
Year 2008 will definitely go down in the history as the year of the greatest...
Differentiators in FX Business
The foreign exchange market is the largest and most liquid sector of the global financial system. Bank for International Settlements’ Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity 2004, estimated foreign...
An Overview of Structured Finance
What is structured finance?
Structured Finance enables efficient refinancing and hedging profitable economic activity beyond the scope of conventional form of on-balance sheet securities with a view to reduce cost of capital and to mitigate...
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