Financial institutions face many types of risk that can impact their returns and solvency. Some of the major risks include credit risk from borrower defaults, liquidity risk from unexpected withdrawals, interest rate risk from changes in rates, market risk from price fluctuations, and operational risk from failures in systems or processes. Managing these interconnected risks is a key objective of financial institution managers.
MODULE 3:
Credit Risks Credit Risk Management models - Introduction, Motivation, Funtionality of good credit. Risk Management models- Review of Markowitz’s Portfolio selection theory –Credit Risk Pricing Model – Capital and Rgulation. Risk management of Credit Derivatives.
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
MODULE 4:
Market Risk (includes asset liability management)
Yield Curve Risk Factor-Domestic and global contexts-handling multiple risk factor-principal component analysis- value at Risk (VAR) – implementation of a VAR system- Additional Risk in fixed income markets-Stress testing- Bank testing.
This material takes a pragmatic look at how the risks in the Treasury operations of a Bank can best be managed. It identifies the risks in the treasury function of a bank and highlights the need for an ERM approach for optimality.
MODULE 3:
Credit Risks Credit Risk Management models - Introduction, Motivation, Funtionality of good credit. Risk Management models- Review of Markowitz’s Portfolio selection theory –Credit Risk Pricing Model – Capital and Rgulation. Risk management of Credit Derivatives.
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
MODULE 4:
Market Risk (includes asset liability management)
Yield Curve Risk Factor-Domestic and global contexts-handling multiple risk factor-principal component analysis- value at Risk (VAR) – implementation of a VAR system- Additional Risk in fixed income markets-Stress testing- Bank testing.
This material takes a pragmatic look at how the risks in the Treasury operations of a Bank can best be managed. It identifies the risks in the treasury function of a bank and highlights the need for an ERM approach for optimality.
In this presentation you will be introduced to the “Various Risk Factors in Banking”, which will help you understand the components and types of risk and it’s peril on the banking sector and risk terminologies used in the banking sector.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
2. 2
Risks at Financial Institutions
• One of the major objectives of a financial institution’s
(FI’s) managers is to increase the FI’s returns for its
owners
• Increased returns often come at the cost of increased
risk, which comes in many forms:
– credit risk – foreign exchange risk
– liquidity risk – country or sovereign risk
– interest rate risk – technology risk
– market risk – operational risk
– off-balance-sheet risk – insolvency risk
3. 3
Risks at Financial Institutions
• Credit risk is the risk that the promised cash flows from
loans and securities held by FIs may not be paid in full
– FIs that make loans or buy bonds with long maturities are
relatively more exposed to credit risk
• thus, banks, thrifts, and insurance companies are more exposed than
MMMFs and property-casualty insurance companies
– many financial claims issued by individuals or corporations have:
• limited upside return with a high probability
• large downside risk with a low probability
– a key role of FIs involves screening and monitoring loan
applicants to ensure only the creditworthy receive loans
• FIs also charge interest rates commensurate with the riskiness of the
borrower
4. 4
Risks at Financial Institutions
• Credit risk (cont.)
– the effects of credit risk are evidenced by charge-offs
• the Bankruptcy Reform Act of 2005 makes it more difficult for
consumers to declare bankruptcy
– FIs can diversify away some individual firm-specific credit risk,
but not systematic credit risk
• firm-specific credit risk is the risk of default for the borrowing firm
associated with the specific types of project risk taken by that firm
• systematic credit risk is the risk of default associated with general
economy-wide or macroeconomic conditions affecting all borrowers
5. 5
Risks at Financial Institutions
• Liquidity risk is the risk that a sudden and unexpected
increase in liability withdrawals may require an FI to
liquidate assets in a very short period of time and at low
prices
– day-to-day withdrawals by liability holders are generally
predictable
– unusually large withdrawals by liability holders can create
liquidity problems
• the cost of purchased and/or borrowed funds rises for FIs
• the supply of purchased or borrowed funds declines
• FIs may be forced to sell less liquid assets at ―fire-sale‖ prices
6. 6
Risks at Financial Institutions
• Interest rate risk is the risk incurred by an FI when the
maturities of its assets and liabilities are mismatched and
interest rates are volatile
– asset transformation involves an FI issuing secondary securities
or liabilities to fund the purchase of primary securities or assets
– if an FI’s assets are longer-term than its liabilities, it faces
refinancing risk
• the risk that the cost of rolling over or re-borrowing funds will rise
above the returns being earned on asset investments
– if an FI’s assets are shorter-term than its liabilities, it faces
reinvestment risk
• the risk that the returns on funds to be reinvested will fall below the
cost of funds
7. 7
Risks at Financial Institutions
• Interest rate risk (cont.)
– all FIs face price risk (or market value risk)
• the risk that the price of the security changes when interest rates
change
– FIs can hedge or protect themselves against interest rate risk by
matching the maturity of their assets and liabilities
• this approach is inconsistent with their asset transformation function
• Market risk is the risk incurred in trading assets and
liabilities due to changes in interest rates, exchange rates,
and other asset prices
– closely related to interest rate and foreign exchange risk
8. 8
Risks at Financial Institutions
• Market risk (cont.)
– adds trading activity—i.e., market risk is the incremental risk
incurred by an FI (in addition to interest rate or foreign exchange
risk) caused by an active trading strategy
– FIs’ trading portfolios are differentiated from their investment
portfolios on the basis of time horizon and liquidity
• trading assets, liabilities, and derivatives are highly liquid
• investment portfolios are relatively illiquid and are usually held for
longer periods of time
– declines in traditional banking activity and income at large
commercial banks have been offset by increases in trading
activities and income
9. 9
Risks at Financial Institutions
• Market risk (cont.)
– declines in underwriting and brokerage income at large
investment banks have been offset by increases in trading activity
and income
– actively managed MFs are also exposed to market risk
– FIs are concerned with fluctuations in trading account assets and
liabilities
• value at risk (VAR) and daily earnings at risk (DEAR) are
measures used to assess market risk exposure
– market risk exposure has caused some highly publicized losses
• the failure of the 200-year old British merchant bank Barings in 1995
• $7.2 billion in market risk related loss at Societe Generale in 2008
10. 10
Risks at Financial Institutions
• Off-balance-sheet (OBS) risk is the risk incurred by an
FI as the result of activities related to contingent assets
and liabilities
– OBS activity can increase FIs’ interest rate risk, credit risk, and
foreign exchange risk
– OBS activity can also be used to hedge (i.e., reduce) FIs’ interest
rate risk, credit risk, and foreign exchange risk
– large commercial banks (CBs) in particular engage in OBS
activity
• on-balance-sheet assets of all U.S. CBs totaled $10.8 trillion in 2007
• the notional value of OBS items totaled $180.6 trillion in 2007
11. 11
Risks at Financial Institutions
• OBS risk (cont.)
– OBS activities can affect the future shape of FIs’ balance sheets
• OBS items become on-balance-sheet items only if some future event
occurs
• a letter of credit (LOC) is a credit guarantee issued by an FI for a
fee on which payment is contingent on some future event occurring,
most notably default of the agent that purchases the LOC
• other examples include:
– loan commitments by banks
– mortgage servicing contracts by savings institutions
– positions in forwards, futures, swaps, and other derivatives held
by almost all large FIs
12. 12
Risks at Financial Institutions
• Foreign exchange (FX) risk is the risk that exchange rate
changes can affect the value of an FI’s assets and
liabilities denominated in foreign currencies
– FIs can reduce risk through domestic-foreign activity/investment
diversification
– FIs expand globally through
• acquiring foreign firms or opening new branches in foreign countries
• investing in foreign financial assets
– returns on domestic and foreign direct and portfolio investment
are not perfectly correlated
• underlying technologies of various economies differ
• exchange rate changes are not perfectly correlated across countries
13. 13
Risks at Financial Institutions
• FX risk (cont.)
– a net long position in a foreign currency involves holding more
foreign assets than foreign liabilities
• FI loses when foreign currency falls relative to the U.S. dollar
• FI gains when foreign currency appreciates relative to the U.S. dollar
– a net short position in a foreign currency involves holding
fewer foreign assets than foreign liabilities
• FI gains when foreign currency falls relative to the U.S. dollar
• FI loses when foreign currency appreciates relative to the U.S. dollar
– an FI is fully hedged if it holds an equal amount of foreign
currency denominated assets and liabilities (that have the same
maturities)
14. 14
Risks at Financial Institutions
• Country or sovereign risk is the risk that repayments
from foreign borrowers may be interrupted because of
interference from foreign governments
– differs from credit risk of FIs’ domestic assets
• with domestic assets, FIs usually have some recourse through
bankruptcy courts—i.e., FIs can recoup some of their losses when
defaulted firms are liquidated or restructured
– foreign corporations may be unable to pay principal and interest
even if they would desire to do so
• foreign governments may limit or prohibit debt repayment due to
foreign currency shortages or adverse political events
15. 15
Risks at Financial Institutions
• Country or sovereign risk (cont.)
– thus, an FI claimholder may have little or no recourse to local
bankruptcy courts or to an international claims court
– measuring sovereign risk includes analyzing:
• the trade policy of the foreign government
• the fiscal stance of the foreign government
• potential government intervention in the economy
• the foreign government’s monetary policy
• capital flows and foreign investment
• the foreign country’s current and expected inflation rates
• the structure of the foreign country’s financial system
16. 16
Risks at Financial Institutions
• Technology risk and operational risk are closely related
– technology risk is the risk incurred by an FI when its
technological investments do not produce anticipated cost savings
• the major objectives of technological expansion are to allow the FI to
exploit potential economies of scale and scope by:
– lowering operating costs
– increasing profits
– capturing new markets
– operational risk is the risk that existing technology or support
systems may malfunction or break down
• the BIS defines operational risk as ―the risk of loss resulting from
inadequate or failed internal processes, people, and systems or from
external events‖
17. 17
Risks at Financial Institutions
• Insolvency risk is the risk that an FI may not have enough
capital to offset a sudden decline in the value of its assets
relative to its liabilities
– insolvency risk is a consequence or an outcome of one or more of
the risks previously described:
• interest rate, market, credit, OBS, technological, foreign exchange,
sovereign, and/or liquidity risk
– generally, the more equity capital to borrowed funds an FI has the
less insolvency risk it is exposed to
– both regulators and managers focus on capital adequacy as a
measure of a FI’s ability to remain solvent
18. 18
Risks at Financial Institutions
• Other risks and interactions among risks
– in reality, all of the previously defined risks are interdependent
• e.g., liquidity risk can be a function of interest rate and credit risk
– when managers take actions to mitigate one type of risk, they
must consider such actions on other risks
– changes in regulatory policy constitute another type of discrete or
event-specific risk
– other discrete or event specific risks include
• war, revolutions, sudden market collapses, theft, malfeasance, and
breach of fiduciary trust
– macroeconomic risks include increased inflation, inflation
volatility and unemployment