Tag Archives: Risk Management
Greediness faciliated by slack regulation leads to banks’ downfall
Jerome Kerviel former employee Societe Generate, the author of 4.9 billion Euros loss for the bank has claimed now that his superiors knew of his risky bets. (Source Ruadhan Mac Cormaic in Paris). He also claims his superiors turned a blind...
An insight into swap execution facility
Swap Execution Facility is a new entity created by Dodd-Frank Wall Street Reform and Consumer Protection Act (in US).
A swap is broadly defined to include most OTC derivatives. Rates swaps, currency swaps, equity swaps, credit default swaps...
Banks’ development and role of technology
Well. That was the topic of the IDRBT Foundation Day Lecture 2011 delivered by Dr C Rangarajan, former Governor of Reserve Bank of India and present Chairman, Advisory Council to the Prime Minister of India on 28th November 2011 at the sprawling...
Unconventional thoughts
I sympathize with the present day inventors who claim great inventions. Their so called great inventions do not see the light of the day, after they announce over the media. I have some questions to ask.
– What went wrong with such inventors...
Trends in Risk and Margin
Any activity is associated with risk – a loss or gain. Financial risk management is not about avoiding risk. Rather, it is about understanding and communicating risk, so that risk can be taken more confidently and in a better way. (David Koenig,...
Of Banks and Bankers
Like other business, banks exist to acquire and use assets so that the value of their benefits exceeds their costs.
Their basic functions are – borrowing and lending, price determination, information aggregation and co-ordination, risk sharing...
Hedge Funds Demystified
What are Hedge Funds?
Investment pools, mainly for rich individuals and large institutions that can take risks as they play both sides of various stock, bond, or currency markets.
Loosely regulated private pools of investment capital that can...
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...
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...
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...
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