The face of banking is changing and fast. Pick any aspect of banking – risk management, pricing, marketing outreach, customer outreach, product development, cost and revenue allocation – data science is there. The face of the banking industry has been evolving rapidly, particularly post the financial crisis of 2008. Banks were some of the earliest
This reading is a part of the syllabus for FRM Part 2 Exam in the section ‘Operational and Integrated Risk Management’. This is a part of the regulatory readings. In the course of creating a single European market for financial services and in the wake of two financial crises, regulatory frameworks in the financial services
Banks are among our enduring of financial institutions. Their survival in so many different historical periods is testimony to their importance. Professor Shiller traces the origins of interest rates from Sumeria in 2000 BC, to ancient Greece and Rome, up to the Song Dynasty in China between the 10th and the 12th century. Subsequently, he
The banking industry today faces many challenges, and the need for strong internal governance and control has never been more important. Controls, rules and limits within a bank – and in particular, the interactions of those controls, rules and limits – do more than just limit risk; they also create incentives. The following speech by
A recent YouGov survey commissioned by London based private bankers, Duncan Lawrie, has confirmed the relentless deterioration in the public’s perception of the main high street banks in the wake of events such as the Libor fixing scandal, the computer problems at Natwest and the exposure of the bonus culture which appears to dominate the
This lecture discusses deposit banking, fractional reserve banking, deposit multiplier, creating money out of “thin air”, and the credit crunch.
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 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
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.