Tag Archives: Funding
LIBOR Revisited
Do you know?
When LIBOR was born?
Minos Zombanakis, born 88 years ago on a Greek island, remembers well the birth of the interest rate benchmark. “I was, more or less, if you excuse the lack of modesty, the one who started the whole thing,”...
Next Level for Trade Repositories – Part II
QUANT MEASURES
Size refers to the scale of activity (eg volumes) or positions (eg outstanding notional or mark-to-market amounts) in a defined population. Financial institutions with large notional or mark-to-market amounts or volumes may pose...
Systemic risks and Investment Banking
In financial markets, the systemic risk is the risk of failure or collapse of the entire financial markets as opposed to the risk associated with any one of the asset classes, individual financial institution or group.
It can be...
Counterparty risk management needs a closer relook
Counterparty risk is the risk that a counterparty in a transaction will default prior to the expiration of the contract and will be unable to make agreed contractual payments
Experience has shown, normally banking and financial crises have their...
Foreign Exchange Risk Management
The peculiarities of foreign exchange markets are
– An Over The Counter market
– Only market open 24 hours, seven days a week, 365 days a year
– No single location; no barriers
– ...
Foreign Exchange Dealing Operations
If you buy a Binny Silk Saree for your wife (or girl friend!) at T.Nagar Chennai Nalli Silks, you will naturally want to pay for it with Indian Rupees and the Nalli Silks will want to be paid in Rupees because he pays all his bills with Rupees.
Likewise,...
Basic concepts in Foreign Exchange
Meaning:
The term foreign exchange is popularly referred to as the currencies of other countries. To an Indian, US Dollar is a foreign currency just as Indian Rupee to an American. Mr X, an Indian, receives a remittance of (say) USD 1000 from...
Gold – Weights & Measures Pricing
The traditional unit of weight for Gold is the Troy Ounce of the Anglo Saxon system of weights and measures.
Despite the gradual conversion to the metric system, the troy ounce remains a traditional fixture of the Gold trade and the most important...
Liquidity crises and technology responses
BIS Working Paper No.293 issued in November 2009 deals with the very interesting recent market happening – liquidity crisis. It also covers some ten propositions about liquidity crises.
While going through the same, I was looking for ways...
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...
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