Bank loan limits up to within 20% of all equity capital. Business feasibility, creditworthiness of business practitioners and contractors, then check the overall risk within the scope of required funding is a loan by calculating the appropriate limit. Interest rates and fees will be determined after an internal review. And normally loan is renewable up to 5 years. Methods of repayment classify ac
Early 2000, American was in an economic recession from Information Technology Bubble Decay, 9.11, Iraq war.
So America enforced Low interest rates to stabilize the economy.
After then, Housing Finance Interest was decreased and Real estate Price was increased.
banks increased very much between 2005 and 2006 as a consequence of the stability of the credit quality. However, during the crisis there was a 29% decline in loans and advances to banks that occurred mainly in Hong Kong and the UK where Balance Sheet Management invested a greater proportion of its assets in government and government-guaranteed debt as a measure to stop losing money. After the c
Banking risk, however, has been increasing. After successive reductions of interest rates and the lifting of quotas on loans, the expansion of credit accelerated significantly in 2009. In a context of relatively lax risk management, asset quality will be likely to deteriorate with the amount of non-performing loans increasing. With the government ready, however, to recapitalize banks if necessary
Risk증가
금융기관들은 돈이 귀해져서 은행간 자금 임대금리 상승으로
TED Spread 상승
2007년 12월 11일 221bps까지 상승
Model of banking에 대한 논란
-> 최근의 신용위기에 큰 타격을 받은 것은 IB model
많은 전통적 retail 영업 은행들이 자산유동화와 헷지펀드 활
Savings bank suspension
: a suspension of banks which are below
standard of BIS capital adequacy ratio
A lot of savings banks
are suspended in 2011
Depositors
more than 50 million won and
subordinated bond-holders
lost their principal
Charter value
: the value of a bank being able to continue to
do business in the future.
Charter value would be lost in case of bankru
banks more resilient to such procyclical dynamics. These measures will help ensure that the banking sector serves as a shock absorber, instead of a transmitter of risk to the financial system and broader economy.
In addition to the leverage ratio discussed in the previous section, the Committee is introducing a series of measures to address procyclicality and raise the resilience of the banking
bank that specializes in Asia, DBS leverages its deep understanding of the region, local culture and insights to serve and build lasting relationships with its clients
Provides the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East
Also active in capital markets, with extensive product origination and risk management capabil
Risk management
3.1. SEC’s current hedging activities
In accordance with its risk management policy, the Company uses derivative instruments, primarily forward exchange contracts, to hedge foreign currency exchange rate risks regarding foreign assets and liabilities. In other words, a foreign branch buys or sells currency forward products about 6 months before expired through the bank f