Opening up a new checking or savings account is simple. Some banks have made it so streamlined. You can complete the whole process online and in less than 15 minutes. Talk about fast! Just because some companies have made it quick and straightforward, doesn’t mean they are the best choice. You need to check out […]
Banking
What is Interest Rate Risk in the Banking Book (IRRBB)?
In 2016, the Basel Committee on Banking Supervision (BCBS) issued new standards on Interest Rate Risk in the Banking Book commonly referred to as IRRBB. Before these standards, the Basel Committee had issued guidance on interest rate risk management in their 2004 paper “Principles for the management and supervision of interest rate risk” The new […]
How Banks Meet Customer Expectations
The relationship between company and customer is based on trust, particularly in the case of financial organizations. Customers seek financial products to save, invest or take risk. This relationship works in the backdrop of macro and micro conditions. Financial organizations like banks or investment houses can try and control micro conditions with meaningful customer oriented […]
Installment Loans: Tips to Understanding the Loan Agreement
When life throws you a financial curveball, bouncing back isn’t always that simple. Unexpected bills, a car repair, or a home repair can dig deep into your wallets. In circumstances such as these, many look to installment loans as a means for temporary financial relief. When taking out a loan, however, it is imperative that […]
What are Bitcoins?
Over the past few weeks the talk about bitcoins has been taking importance and almost every media publication is talking it. Some people are looking at it as the future of ecommerce, while others are pessimistic and think it’s just a bubble. So, what exactly are bitcoins and how you can also use them? In […]
ALM Overview – Dimensions of Risk Management for a Depository
This document provides an excellent overview of ALM and financial risk management in a Depository. The topics covered include: ALM background and framework Highlights in interest rate risk Regulatory perspective Case study: Appetite for interest rate risk Two measures of interest rate risk: NII and EVE Factors for setting risk limits ALM brings unification of […]
Perspectives on Liquidity Stress Testing (Iceland Example)
This reading is a part of the syllabus for FRM Part 2 Exam in the section ‘Current Issues in Financial Markets’. The global financial crisis revealed weaknesses in the stress testing exercises performed on financial institutions and systems around the world. These failures were most evident in the area of liquidity risk, where now-obvious vulnerabilities […]
Stress Testing Banks
This reading is a part of the syllabus for FRM Part 2 Exam in the section ‘Operational and Integrated Risk Management’. How much capital and liquidity does a bank need – to support its risk taking activities? During the recent (and still ongoing) financial crisis, answers to this question using standard approaches, e.g. regulatory capital […]
Observations and Developments in Risk Appetite Frameworks and IT Infrastructure
This reading is a part of the syllabus for FRM Part 2 Exam in the section ‘Operational and Integrated Risk Management’. The report summarizes the efforts of two SSG working groups to assess the progress that financial institutions have made in developing risk appetite frameworks and building robust information technology infrastructures. The observations in this […]
The Failure Mechanics of Dealer Banks
This reading is a part of the syllabus for FRM Part 2 Exam in the section ‘Operational and Integrated Risk Management’. In this paper, the author explains the key failure mechanics of large dealer banks, and some policy implications. This is not a review of the financial crisis of 2007–2009. Systemic risk is considered only […]