Banking and Financials

   ......CONTINUATION FROM BASEL FRAMEWORK SUMMARY 2013 Onward: Basel III Between 2010 and 2012, the BCBS published several documents that set out the key elements of Basel III. The requirements entered into force in 2013, but with extended transitional arrangements in many cases. Most of Basel III took the form of enhancements or amendments to Basel II/Basel 2.5, much of which was retained. The areas addressed by Basel III included capital standards, leverage and liquidity ratios, and globally systemically important banks (G-SIBs). Phase-in arrangements allowed banks until January 2019 to fully implement Basel III (with a few exceptions). There were two main reasons for this. First, banks were in recovery mode following the crisis and it took time to deleverage/de-risk balance sheets, raise new capital, revamps business strategies, and enhance risk management capabilities. Second, some aspects of the new requirements, notably about the leverage and liquidity ratios, were not final

  While the BCBS was established in 1974, it was not until 1988 that the first set of Basel requirements was agreed and issued. Since then, the structure and scope of the standards and guidelines issued have increased substantially. 1988: Basel I Basel, I was issued in 1988, though it was not fully implemented until 1992. It was intended to be applied to internationally active banks but was adopted by many other banks and regulators (being implemented in over 100 countries). Its core requirement was the establishment of a minimum capital adequacy ratio (CAR) – the amount of capital a bank should have as a percentage of its total risk exposure (risk-weighted assets or RWAs). The agreed minimum for CAR was 8%. CAR =(Regulatory Capital/RWAs) ≥ 8% Calculating RWAs involves applying a risk weight to the nominal value of an exposure. RWA = Exposure × Risk Weight For a portfolio of N exposures: RWAs = RWA A + RWA B +…+RWA N   Risk weights varied depending on the asset, wi

Certainly, no comparison can be made between ancient and modern banks, yet it is necessary to know how the present banking system gradually developed. In ancient times, goldsmiths, businessmen, and moneylenders used to perform the work of banking in every country. Hence, Crowther has described the following persons are the ancestors of modern banks The Merchants The oldest ancestors of the modern banks were merchants. The merchants used to exchange gold, silver coins and deposit the valuable ornaments or goods made of gold, silver, and gems. The receipt (written document as proof) given by them was considered equivalent money. They had played a vital role to develop the banking transaction. The Money Lenders The moneylenders were the second ancestors of modern banks. Lending and borrowing are almost as old as a moneylender, are found even in quite primitive communities. He is not usually regarded as a, very lovely object the user is one of the oldest terms of abuse. But the service he

Making yourself hireable means that you have a much easier shot at getting your next job. Here are a few tips and tricks to make yourself attractive to employers which entice them to hire you. You Dress for the Interview   A lot of job candidates may understand it wrong or incorrect. Always remember that you have a steep uphill climb in front of you when you walk into an interview putting on informal clothes. Nobody has ever lost an opportunity for a job just because they were overdressed. But underdressing will crumble your chances of being hireable because the first impression you make will be a negative one. Your Resume is Focused and Honest   Resumes that are neat and tidy, focused and honest easily set candidates apart from others. Anything longer than a two-page resume is arguably too long. A customized resume built specifically for each job opportunity is a shortcut to making yourself more hireable. Why? Because it portrays honesty. Know Your Resume Inside and Out   Only hav

Are you a job seeker and you are above 50? Are you worried that age difference could be a hindrance to your dream job as you are concerned about age discrimination? Then, let's look at some prompt and convenient way to make you look younger and mode up to date, as required in today’s period. Here are 10 ideas on how to begin: Objectives Are Out The modern Resume should clearly depict what value a candidate can provide to his employer and the organization. Career Objectives are hence, outdated now and it is better to exclude it from your resume. Instead, highlight your major skills and work experiences in a career summary so that you get the hiring manager’s attention and invoke them to continue going through your resume. Remove Your Physical Address Including your street address is unnecessary and with identity theft on the rise, it is another opportunity for someone to steal your personal information. Some employers and recruiters search by location, so include your ci

    A letter of credit (L/C) is a combination of: A guarantee issued by the buyer/importer’s bank in favor of the seller/exporter. A payment method at sight or at future date provided the exporters submit necessary documents that comply with the terms and conditions set out in the L/C An LC is also known as documentary credit or simply a credit. These terms are used in UCP 600, which is the internationally agreed set of rules and regulations that govern LC. UCP 600, the set of rules that covers nearly all L/Cs issued, defines a [letter of] credit as … any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honor a complying presentation. The term "honor" in the context of UCP 600 means: To pay at sight if the credit is available by sight payment. To incur a deferred payment undertaking and pay at maturity if the credit is available by deferred payment. To