The most comprehensive educational resources for finance

Lecture 14: Introduction to Central Banking

This lecture provides an introduction to the central banking. It discusses topics such as legal tender laws, lender of last resort, deposit insurance, money multiplier, and bank reserves. The lecture draws from the book Mystery of Banking.

Lecture 11: Introduction to Commercial Banking

In the previous lectures we discussed various aspects of money. This lecture shifts focus towards banking and provides an introduction to the topic of commercial banking. It briefly covers loan banking and begins deposit banking.

Free Book: Mystery of Banking

Talk about great timing. Rothbard’s extraordinary book unravels the mystery of banking: what is legitimate enterprise and what is a government-backed shell game that can’t last. His explanation is clear enough for anyone to follow and yet precise and rigorous enough to be the best textbook for college classes on the topic. This is because

The Liquidity Problem

The Traditional View of Liquidity Within the U.S. economy, the central bank, officially known as the Federal Reserve (or the “Fed” for short), has been seen as the source of banking system liquidity. The Federal Reserve can alter the supply of money by: changing bank capital requirements, changing interest rates, or by old fashioned money

Wealth Management: Clients and their Satisfaction

Evaluation Point for Banks and Wealth Management Arms; Does WIPRO offer some food for thought? Ever wondered how people involved in wealth management are evaluated. It should be a no brainer: a wealth manager should be evaluated based on the basis of money made by clients through his investment. If not entirely, but a larger

Worst Performing Bank of Year 2011

The year 2011 did not fair well for the banking sector as many banks lost substantial value by the end of the year. Some of the problems faced by banks are increased regulatory requirements, declining margins, and loss of revenue in their fee business. Above all, the economy slowed down overall. The worst performing bank

What do Junior Investment Bankers do?

When you join an investment bank, you will probably start your career as a junior, assisting senior bankers and doing a whole lot of other activities. You will either be a part of the product bankers (leveraged finance, Mergers and acquisitions, capital markets) or industry bankers (healthcare, energy, telecom, etc.). When you go through the

Shadow Banking: Parallel and Growing?

The banking industry in its organized format is not very old. A century ago banks operated in a system with very limited regulation and little backing from the government. It was a system characterized by bank runs. The depression saw the introduction of the federal deposit insurance, which helped reduce bank runs and gave banking

Open Market Operations

The central bank of a country will buy and sell their government securities in the open market. This is refered to as Open Market Operations. In the US, this is done by Federal Reserve. The main purpose of the open market operation is the control the money supply and the short-term interest rates.

A Brief Introduction to Islamic Finance

Islamic Finance is one of the fastest-growing financial sectors in the world. This sector has shown positive prospects despite the global financial crisis that affected all of us. Currently the Islamic finance sector boasts of more than $1 trillion in assets and is growing at a rate of 20% per year. This article provides a