this model‚ it is highlighted that the position of the banks under study is sound and satisfactory so far as their capital adequacy‚ asset quality‚ Management capability and liquidity is concerned. Keywords: financial performance‚ commercial banks‚ capital Adequacy‚ asset quality‚ management capability‚ earnings analysis‚ liquidity analysis. 1. Introduction With the integration of Indian financial sector with the rest of the world‚ the concept of banks and banking has undergone a paradigm shift. Before
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(-2 ≤ Z ≤ 2) where Z is a random variable distributed N(0‚1) (e) None of the above. The risk that many borrowers in a particular foreign country fail to repay their loans is: (a) Credit risk. (b) Country risk. (c) Currency risk. (d) Liquidity risk. (e) Interest rate risk. Provide the most correct term(s) to complete the following sentences: The risk that the failure of one or more troubled financial institution could trigger the contagious collapse of otherwise healthy financial
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in every organization especially in enhancing the predictability of an organization. In PGB‚ adoption of Corporate Financial Policy (CFP) has been approved by Board with the main purpose of managing financial risk exposures of PGB which includes liquidity risk‚ foreign exchange risk‚ and counterparty risk. The diagram above is showing that the in PGB‚ Risk Management Department (RMD) is required to report updates regularly to the PGB Management Committee (MC) and it will be further transferred
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CORPORATE GOVERNANCE LESSONS: CORPORATE GOVERNANCE SUCCESSES AND FAILURES |Student Name: Binish Nida Afaque | | WHY CORPORATE GOVERNANCE BECOMES IMPORTANT NOW? Corporate Governance standards are changing now. The 2008-2009 global financial crisis hit almost the whole world and causes the economic meltdown and recession not only in developing countries but in many rich and developed countries. That is why the debate on the importance of state intervention
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Brothers; market risk‚ credit risk‚ liquidity risk‚ operational risk and reputational risk. After analysis‚ the authors can conclude that all of the above mentioned risks were exceptional high and played a significant role in what would become the largest bankruptcy in history. Finally‚ the authors present a summary of recommendations for more sustainable risk management in investment banking. Key words: Lehman Brothers‚ Investment bank‚ market risk‚ credit risk‚ liquidity risk‚ operational risk‚ reputational
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Banking industry begins to show signs of slowdown After witnessing a strong growth during last few years‚ the banking industry has now started showing signs of slowdown‚ as deposits‚ assets‚ investment and profitability of banking sector is on decline while credit risk‚ market risk‚ interest risk‚ NPLs and advances are widening. According to the assessment of the State Bank of Pakistan’s Quarterly Performance Review of the Banking System (July-September 2008)‚ released on Thursday‚ due to
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Conduct a SWOT analysis and list out the strengths‚ weaknesses‚ opportunity and threat faced by IGB Corp Berhad fron the case above. i. Strengths Predictable profit Enhance liquidity - In build and sell IGB is more likely to own assets whereby by implementing recurring income approache IGB will improve in its liquidity and it will give a positive perception of the company by the investors. This may allow IGB to be more able to invest in other possible business with the hard cash in their bank
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3. Financial Management What will your outlook towards maintenance of liquid assets to ensure that the firm has adequate cash in hand to meet its obligations at all times? Definition: An Asset is said to be liquid if it is easy to sell or convert into cash without any loss in its value. Bank notes and Checking accounts are the most liquid assets. Description: A Liquid Asset allows any individual or a company to access cash at any time they want. At the time of investing‚ the investor must
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institution is exposed to. This requires having a structure in place to look at risk interrelationships across the organization. The risks can be broken into six generic types:- Market or systematic risk Credit risk Counterparty risk liquidity risk operational risk legal risks Credit risk This risk arises from non-performance by a borrower. It may arise from either an inability or an unwillingness to perform in the pre-committed contracted manner. This can affect the lender
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day). 4).List and define the three main types of risk a trading organization faces. The three main types of risk a trading organization faces are: Market risk‚ credit risk and operational risk. Market risk: It’s a combination of price risk‚ liquidity risk and volume risk. Credit risk: The risk of loss of principal or loss of a financial reward stemming from a borrower’s failure to repay a loan or otherwise meet a contractual obligation. Operational risk: the risk of loss resulting from inadequate
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