BASEL Accords

Basel is 3rd most populous city in Switzerland sharing the borders with France and Germany.  It is hub for chemical and pharmaceuticals which is located on the banks of river Rhine. Basel culture is influenced by Germany and France. Basel Accords: These are banking supervision records. They are issued by Basel Committee on banking supervision (BCSB). As BCSB maintains its secretariat at Bank for International Settlement, Basel, it is called Basel Accord. The committee normally refers here and have issued three accor...

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A glimpse of the Forex Market

Introduction The foreign exchange market, also known as "forex", is the largest financial market in the world. Make a guess of how large this market is? It has $4 trillion daily average trade volume which is more than twice the GDP of India. The forex market is an Over the Counter market with no physical location or exchange like BSE, NSE or NYSE. It runs electronically between banks over a 24-hour period. The reasons for trading in forex market can be one or all among speculation, hedging or arbitrage. Whether you are a large corporate...

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Finatix Newsletter - September 2012

Definition Zone Collateralized debt obligation Collateralized debt obligations (CDOs) are a type of structured asset-backed security (ABS) with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand.   Read more:  http://www.investopedia.com/terms/c/cdo.asp#axzz27FxL9IXw The best of Economics, Finance and Politics How FDI in multi-brand retail...

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Finatix Newsletter - September 2012

Definition Zone Dodd-Frank Financial Regulatory Reform Bill It is a piece of legislation that increased government oversight of trading in complex financial instruments such as derivatives. The Dodd-Frank Financial Regulatory Reform Bill was named after Senator Christopher J. Dodd and U.S. Representative Barney Frank. It restricts the types of proprietary trading activities that financial institutions will be allowed to practice. The Dodd-Frank Financial Regulatory Reform Bill was passed with the intent of preventing the collapse...

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Finatix Newsletter- September 2012

Definition Zone Rebate Barrier Option: Options contracts give the holder the right, but not the obligation, to buy or sell a financial asset at an agreed-upon price at, or before, a certain specified date in the future. A rebate barrier option is a knock-out option that provides a refund in the event the knock-out occurs. Since the rebate diminishes the option writer's profits, this type of exotic option is not common. Source: http://www.investopedia.com/terms/r/rebatebarrieroption.asp#ixzz268E7qmS8 The best of Economics,...

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Is greater money supply better for economy?

Germany, 1923: Workers were paid twice a day, and the housewife would stand at the factory gate and rush with wheelbarrows full of million mark notes to buy anything at all for money. Production fell, as people became more interested in speculating than in real production or in working wages. Germans began to use foreign currencies or to barter in commodities. The once-proud mark collapsed. Rudolf Havenstein, the head of the Reichsbank-the German Central Bank made clear that the bank would meet its responsibilities by increasing higher denominations...

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Finatix Newsletter - September 2012

Definition Zone LIBOR: An interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. It is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. Source: http://www.investopedia.com/terms/l/libor.asp#axzz25Eki3C5d The best of Economics, Finance and Politics SEBI weighs plan...

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