44 research outputs found
Top performing small banks: making money the old-fashioned way
Although the profitability of U.S. small banks shrank in the 1980s, two percent of these banks remained highly profitable by emphasizing basic banking, namely acquiring low-cost funds and making low-risk investments.Banks and banking ; Bank size
Modelling Retail Deposit Spreads in the UK
Models that are based on mean-variance analysis seek portfolio weights to minimise the variance of the portfolio for a given level of return. The portfolio variance is measured using a covariance matrix that represents the volatility and correlation of asset returns. However these matrices are notoriously difficult to estimate and ad hoc methods often need to be applied to limit or smooth the mean-variance efficient allocations that are recommended by the model. Moreover the mean-variance criterion has nothing to ensure that tracking errors are stationary. Although the portfolios will be efficient, the tracking errors will in all probability be random walks. Therefore the replicating portfolio can drift very far from the benchmark unless it is frequently re-balanced. Deposits, yield Cruves, Stochastic Interest Rates
Financial intermediares: an introduction/ Gup
xxv, 410 hal.: ill.; tab.; 24 cm
Bank fraud: exposing the hidden threat to finansial instituons/ Gup
xi, 247 hal.; 21 cm
Banking and financial institutions : a guide for directors, investors, and counterparties/ Gup
357 hal.: tab.; 23 cm
The Product Life Cycle: A Paradigm for Understanding Financial Management
The product life cycle has been overlooked by academicians who examine the financial aspects of corporate behavior and teach finance. This article demonstrates how the life cycle concept can be used to enhance both research and teaching by demonstrating how key financial variables, such as market returns, beta, book-to-market value, dividend payout ratios and others. can be expected to change over the course of a firm \u27s life cycle. These variables capture the essence of corporate growth. The statistical results from a sample of 981 firms suggest that the life cycle provides unique insights for evaluating corporate growth and performance, and corporate risk and return. Returnfinder iApp author
Embedded Options Impact On Interest Rate Risk And Capital Adequacy
In this article we consider cases in which a bank finances some option-embedded assets with option embedded liabilities and with equity. We show that risk-based capital guidelines that do not account for these interest sensitive options can be very misleading with regard to the actual interest rate exposure. In extreme cases, any change in interest rates can result in a deterioration in the value of such unhedged positions even though there may be no risk-exposure as measured by traditional means