What is structured finance? In simple words, structured finance is the use of complex financial instruments. Structured financial instruments are riskier It is mostly used by financial institutions and companies with unique financing needs Some examples of structured financial instruments- Derivatives, Mortgage-backed securities (MBS), Collateralised debt obligations (CDO), credit default swaps (CDS), synthetic financial instruments & …
What is meant by Basel norms or Basel accords? Basel norms are international banking regulations issued by the Basel Committee on Banking Supervision (BCBS). The Basel norms is an effort to coordinate banking regulations across the globe, with the goal of strengthening the international banking system. The Basel Committee on Banking Supervision (BCBS) consists of …
The chapter 2 of the Economic Survey is titled- “A New, Exciting Bird’s Eye View of the Indian Economy Through the GST.” Before reading further you may read these articles on GST by Economyria- GST explained The final structure of GST Changes made by the GST council in the 22nd meeting How to file GST …
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A bond is a financial instrument through which a company or government borrows money from the investors at a fixed rate of interest. Effectively, when you are buying a bond, you are lending money to the Government or the company. To illustrate– a company wants to borrow Rs.100 for 10 years. It can issue …
What are bond yield & the yield curve? – Explained Read More »
Punjab National Bank (PNB), the country’s second-largest public sector bank, disclosed that it has detected fraudulent transactions worth Rs.11400 crores at one of its branches in Mumbai. This is the biggest fraud discovered so far in India’s banking history. The magnitude of the scam is massive considering the amount is equivalent to one-third of the total …
The Non-performing Assets (NPAs) or bad loans of banks have increased to alarming levels. Currently, the NPA ratio in Indian banks stands at 9.45 % of gross loans. The RBI has overhauled its stressed asset resolution framework to ensure speedy resolution of bad loans in the future. What are stressed assets? Stressed assets = Non-performing …
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The first chapter of the Economic Survey 2017-18 is titled, “State of the Economy: An Analytical Overview and Outlook for Policy”. The chapter covers the following areas: Short term overview of the Economy Medium-term overview of the Economy Recent developments Outlook for 2017-18 Outlook for 2018-19 (Read: Economic Survey: 10 new facts about the Indian …
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