• Introduction: • The financial and economic development of Bangladesh is inextricably linked to our vulnerability to environmental degradation. • An increasing awareness of these issues and their impact on financial institutions and business enterprises has driven the creation of a guideline encouraging banks and FIs to integrate Environmental Risk Management(ERM) policies into existing Credit Risk Management procedures. • Banks and financial institutions need to adopt ERM practices in a formal and structured manner in line with global norms so ...
Outline • Basel II –Basel II and financial stability –Three Pillars of Basel II = triple protection –Enhanced risk management => Incentives –Supervisory review process (Pillar 2) • Implementation in the EU –Role of CEBS –The challenges and CEBS’ response –Work programme –Publications on CRD Jose Maria Roldan | September 2005 2 Basel II and financial stability • Basel II: Rules for banks to hold sufficient capital to cover their risks ...
Loans held by banks until maturity/default risk-management tool: construction of diversified portfolios No discrepancy between real life and banking paradigm (Diamond 84): Loans retention and diversification: debt-financed bks retain monitoring incentives: perform delegated monitoring bks keep being debt-financed extensively engage in credit risk transfer (CRT): - first traded in 96, CRT vol. $4.5 trill.; - CRT of unrated firms (bk m.) is steadily increasing; -- portfolio products: loan portfolio securitization: 26% of CRT → new pattern of financ ...
Agenda Basel II background Basel II is an opportunity The data management challenge XBRL and Basel II A couple of quotes “Regulators and customers are demanding greater focus on risk management. This call for transparency will challenge traditional business practices and will require more auditable processes throughout the business” Morgan Stanley analyst (on market timing), FT 11/03 “US regulators expect Basel II will apply to a total of around 20 large US banks. All US banks operating ...
Agenda Agenda Industry Overview Industry Overview Market Dynamics Market Dynamics Risk Management Risk Management Environment Environment JP Morgan Chase JP Morgan Chase Merrill Lynch Merrill Lynch Bank of America Bank of America Recommendation Recommendation Definition of Money Center Bank Definition of Money Center Bank Money center bank: a large bank in a Money center bank: a large bank in a major financial center which borrows from major financial center which borrows from and lends to governments, corporations, and lends to ...
Discussion Points • Outline the responsibilities of an asset liability committee (ALCO). • Discuss commonly observed ALCO best practices in community banks. • Review areas of the ALCO policy and/or ALCO activities that could be enhanced. • Discuss liquidity risk management. • Review new IRR guidance. • Discuss regulatory ALM modeling tips. • Introduce upcoming guidance on credit risk analysis of investment securities. 2 Asset-Liability Committee (ALCO) Responsibilities ALCO Composition • Senior management committee in a financial institution responsible for ...
1-2 1-2 Key Concepts and Skills • Know the basic types of financial management decisions and the role of the financial manager • Know the financial implications of the different forms of business organization • Know the goal of financial management • Understand the conflicts of interest that can arise between owners and managers 2 1-3 1-3 Chapter Outline • Finance: A Quick Look • Business Finance and The Financial Manager • Forms of Business Organization • The Goal of ...
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