Needless to say that the changing processes and services at banks are driven by the rapid information technology developments. This shift also impacted number and composition of bank staff. And… read more →
The prime core activity for commercial banks is transformation. Transformation involves borrowing money from customers with surplus funds and lending money to other customers with a need for funds. Or… read more →
On November 17th, the first of my new online classroom starts: Understanding Financial Markets. Course Highlights: – Understand the importance of financial markets in our economy – Learn about products… read more →
If speculators set up a Carry Trade, they borrow the low interest currency and invest in a high interest currency. For example: you borrow USD 100 million at 1% and… read more →
Risk management is driven by two emotions: fear and greed. Fear results in selling risk, know as hedging. Hedgers want protection for negative price developments and render possible profitable outcomes.… read more →
A Central Bank task is to guard the stability of the financial system. A stable financial system is based on three pillars: stable prices, sound financial institutions and efficient payment… read more →
As I have stated in previous blogs, financial markets are driven by 2 emotions: fear and greed. If fear reigns, investors sell risky assets and enter safe havens, such as… read more →
In 2014, some companies blamed the high exchange rate of Euro to the US dollar for their low profits. But this is an excuse to cover up bad management. Let’s… read more →
Lending money is a risky business. So if banks lend money they make a reservation that can be used if the borrower can’t fulfill the loan obligations. In bank jargon:… read more →
During my finance studies in the 80-ies, I learned about the Efficient Market Hypothesis. This Hypothesis is about the reflection of market information in prices of securities traded on the… read more →
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