Jede sollte ihre eigene Schildkröten essen – Gleichheit in der Ungewissheit
Der Ursprung des Ausdrucks ist wie folgt. Man erzählt sich, dass eine Gruppe von Fischern eine große..
26 SeptemberTag: banks
The Costs of Money – Liquidity Premium
Where other banks may have more dynamics to consider and thus more components, the opportunity costs applied in the funds transfer pricing process must comprised out of the following minimum components: The fund transfer rate (FTR) The funding spr…
19 OctoberThe Art of Fund Transfer Pricing
Funds transfer pricing (FTP) is a process used by banks to measure how each source of funding (deposits and loans) contributes to the bank’s profitability. A bank’s business depends on the deposits it receives. It uses these deposits to make loans…
29 SeptemberBank’s Regulatory Requirements
To continue on with the banking series, I will assume here you have an understanding of a firm’s balance sheet and income statements. As we go on with the series, I will start to use industry specific jargon and even pull in specific terms from my…
8 SeptemberA Banking System Run by Kids
The Children’s Development Khazana is a bank staffed and patronized exclusively by children. It started in New Delhi in 2001 and has since opened up more than 200 branches in half-a-dozen countries. The branches are run almost entirely by and for …
15 AugustOn the European Downgrades
From Robert Peston: Perhaps more importantly, and at the risk of repeating myself, the downgrades increase the dependence of the big banks on finance from the European Central Bank and for the economic recovery of the eurozone, that’s a very bad…
15 JanuaryFear the ECB..
or any central banking institution for that matter. Paul Krugman points to a very important, very recent paper by Hyun Song Shin (pdf), excerpt: As we will see shortly, foreign banks’ US branches and subsdiiaries drive the gross capital outflows t…
21 NovemberWhy are bank stocks falling so rapidly?
Bank of America, the nation’s largest bank by assets, plunged 20 percent and Citigroup slid 16 percent, leading the KBW Bank Index (BKX) down 11 percent. It was the worst showing for the 24-company benchmark since April 20, 2009, when Bank of Amer…
9 AugustCapitalists’ Animosity Against Capitalism
Joseph Schumpeter in Capitalism, Socialism, and Democracy, argued that capitalism would eventually destroy itself because it creates, educates and subsidizes a vested interest in social unrest. He publicized and borrowed the idea of the early us…
27 May