Central Bank prudential supervision of financial institutions based on the advices from the Basel Committee is one of the three pillars of a stable financial system. The new Basel Committee… read more →
Recently the official minimum bid rate from the European Central Bank is set to a historical low of 0,05%. Worldwide, Central banks are printing huge amounts of new money. You… read more →
Banks have a key role in the development of economies by lending money to customers. But who to lend to? Lend to (retail) customers to buy a house? Or lend… read more →
Money is important for our economies as oil is for an engine. Too little of it has devastating effects. A bit extra (say 2%) makes it possible for the engine… read more →
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 →
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