Archive: Page 12

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...

Risks in international trade

As a practitioner, I have encountered many risks while handling international trade in different locations (domestic and foreign included). I was amazed and at the same time swayed by these risks in international trade. I have meticulously documented...

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...

Stress testing on banks

Stress testing is the topic of the day. This blog makes an attempt to demystify the topic stress testing. A banking organization holds capital to guard against uncertainty. Capital reassures an institution’s depositors, creditors and counterparties‐‐and...

The business of prime broking – an overview of opportunities

To understand better the business of prime broking, there is a felt need to understand the business of hedge funds first, as prime brokers are in their business only because of these hedge funds! According to Goldman Sachs & Co, the term...

The lessons one has to learn from markets these days

Bear Stearns, Merrill Lynch, Lehman Bros, AIG ? These were the big names one feared for in the markets and one cherished dreams to be associated with. What indeed made them big and feared for?  Their aggressiveness in the first place, positioning...

What does the future hold for investment banking?

Basel Committee of Bank for International Settlements in its document on “Strengthening the resilience of the banking sector” has identified the buildup of excessive on and off balance sheet leverage in the banking system as one of the underlying...

Would you like to retain your customers?

Customer service is an art. Though it emanates from the background of the provider, his philosophies and practices, it still can be learnt by adhering to certain codified steps. Here is an approach to retain customers in our fold. Step 1 Ascertain...