Science topic

Banking and Finance - Science topic

Explore the latest questions and answers in Banking and Finance, and find Banking and Finance experts.
Questions related to Banking and Finance
  • asked a question related to Banking and Finance
Question
6 answers
Hi,
Are there any suggestions on a thesis topic/research question regarding sustainable finance (e.g. in the banking industy) from a law and finance perspective?
Relevant answer
Answer
Dear Ana Marianou,
In response to the above query, I give my proposed thesis topics on sustainable finance (e.g. in the banking industry from a legal and financial perspective):
1. Determinants of the development of sustainable banking, including green lending in the financing of pro-environmental business ventures.
2. Normative and systemic determinants of the development of sustainable investment banking.
3. Sustainable finance as an important factor for the smooth implementation of the pro-environmental transformation of the classic growth, brown, linear economy of excess to a sustainable, green, zero-carbon zero-growth and closed loop economy
4 Identification of the determinants of green, sustainable finances implemented by companies and firms taking into account the sectoral analysis of the economy.
5. Comparative analysis of sustainable finance developed within the commercial and public financial system.
6. Green, sustainable finance implemented within the public financial system as an important factor of pro-environmental state interventionism.
7. green, sustainable finance as an important factor in the new green mission of economic actors developing pro-environmental business ventures.
8. Green, sustainable banking as a new trend in the development strategy of modern banking.
9. Systemic and legal determinants of the development of green, sustainable finance and/or banking taking into account business and political lobbying.
10. Changes in the provisions of national legal normative defining the opportunities for the development of green, sustainable finance against the background of international regulations.
Best regards,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
8 answers
I need help with my bachelor's research topic.
Relevant answer
Answer
Dear Yesui Myalsuren,
I propose the following topics for undergraduate theses in digital banking:
1. The impact of the SARS-CoV-2 (Covid-19) coronavirus pandemic on the development of digital banking (taking into account the growth factor of digitisation and internetisation of economic processes).
2. Analysis of the determinants of the development of cybercrime operating within digital banking.
3. Improving cybercrime risk management in digital banking.
4. Key determinants of the opportunities for the development of lending activities and the offering of bank loans via the Internet under the development of digital banking.
5. The impact of digital banking development on the question of the role and importance of central banking in the context of the state finance system.
6. The development of digital banking as an important factor in the development of payments and settlements made via the Internet.
7. Determinants of the development of online banking and banking products and services offered to customers remotely via smartphone as part of mobile banking.
8. Improving the procedures for the analysis of a potential borrower's creditworthiness and the bank's credit risk applied in commercial banks developing digital banking.
9. Analyse the correlation between the development of ICT, Internet and Industry 4.0 information technologies (Big Data Analytics, Blockchain, cloud computing, machine learning, Internet of things, artificial intelligence, Business Intelligence, smart technologies, digital twins, etc.) and the development of digital banking into which new technologies are implemented.
10. The impact of the development of digital banking on the level of citizenbanking in the country.
11. Opportunities for business development operating in the fintech formula developed in digital banking.
12. The impact of the development of digital banking on the development of foreign exchange markets and on the development of the derivatives market offered to customers remotely via the Internet.
Best wishes,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
3 answers
Does Measurement Of S&P As Well As PMI Affects The Economy Of A Country?
Relevant answer
Answer
S&P measurement is just an opinion about default risk. It does not affect GDP in any way.
PMI has an indirect effect on gdp
  • asked a question related to Banking and Finance
Question
7 answers
I trying to understand how to get my papers published in good journals of economics/finance. How can I ensure that my paper is worth publishing? I submitted a paper in one journal and they rejected it after two months, another paper was rejected in a few days.
It is required for my PhD to be considered complete that I have atleast two papers published in UGC/Scopus approved journals. Any suggestions?
Relevant answer
Answer
  • Make sure to present your papers at your institution's seminars, good domestic conferences, good international conferences, send for a curtesy review to some expert you know, and then send them to the journal.
  • Before sending it to the journal have its English language copy editing to make it easy to understand.
  • Try to find very relevant journals from ABDC List and complete all submission requirements carefully.
  • Sometimes you may get immediate rejection either your paper was not relevant to the journal or submission requirements were not met.
Rejection is very common in the publication process don't be dishearted. Do your best and will be ultimately picked up. This process may take years for a good publication.
All the best
  • asked a question related to Banking and Finance
Question
3 answers
A lo que me refiero con esta pregunta, es si piensan que en un futuro no muy lejano se deje lo tangible y pase a existir una economía 100% intangible. Todo se haría de manera digital y se abandonaria por completo lo tangible
Relevant answer
Answer
Si le preguntas a cualquier contable o contador, te dirá que no.
  • asked a question related to Banking and Finance
Question
12 answers
My area of interest is technology adoption among a certain group of people , what methodologies/framework/design could be applicable for my Ph.D thesis? Kindly enlighten by sharing few books or research thesis.
  • asked a question related to Banking and Finance
Question
10 answers
Hello, I am a PhD student and I am looking for the topic of financial inclusion and what are the requirements to achieve it. With linking monetary policy variables and indicators of financial inclusion, can you help me?
Relevant answer
Answer
Hii... Keir.... I'm Mohammad H. Holle. Regarding the question of Financial Inclusion indicators, in the research I did, I used general indicators that are also used by the World Bank and the Indonesian Financial Services Authority. the indicators are: Access, Quality, and Usage. so my brother.
  • asked a question related to Banking and Finance
Question
7 answers
In times of a pandemic, as employees of financial departments, we were subjected to a difficult test of high volatility of economic and financial data on enterprises, which we financially analyze on a daily basis. The most common opinion I received while working on financial plans during the exchange of experiences with ICV Poland members was that the method of incremental budgets and rigid budgeting were completely rejected. These methods turned out to be completely useless during the year 2020. During the pandemic, companies were hit by supply shocks (broken and irregular supply chains) and demand shocks (large fluctuations in the demand for a company's products different from what was before the covid-19 pandemic). Financial planning in the field of personal finances in individual households underwent a real revolution due to changes in incomes and due to increasing inflation and high economic uncertainty. What is Your opinion on these issues and do You know any research studies developed on these topics?
Relevant answer
Answer
Uncertainty is unavoidable. Today is it the pandemic. Previously we have seen BREXIT and the Global Financial Crisis. Tomorrow it might be nuclear war. Therefore financial planning both for enterprises and even households needs to take a steer from risk management to balance opportunities against one-in-10 year events, one-in-100 year events, black swan events etc leveraging the knowledge of history and subject matter experts.
  • asked a question related to Banking and Finance
Question
3 answers
According to IBM Security X-Force (2021), server access was the third most common attack type in 2020. Nearly 36% of the server access attacks X-Force Incident Response observed in 2020 targeted the finance and insurance sector, with business services (14%), manufacturing (7%), and healthcare (7%) also getting hard hit.
The threats of server access attacks do not seem to go away or rather slow down, BUT they seem to get more complicated.
Are the current mitigation techniques for preventing server access attacks well-designed?
Besides that, Do you think adopting the Zero Trust security strategy will prevent this phenomenon? According to your experience. What are your thoughts on the matter?
Relevant answer
Answer
Zero trust strategy, or policy, or concept, or architecture are already published and actively discussed. However, the reliably secure practical implementations require more variety of secure, usable, and cheap Identity and Access Management (IAM) technologies, which are a backbone of the Zero Trust approach to security.
  • asked a question related to Banking and Finance
Question
25 answers
What kind of scientific research dominate in the field of Credit policy of commercial banks?
Please, provide your suggestions for a question, problem or research thesis in the issues: Credit policy of commercial banks.
Please reply.
I invite you to the discussion
Thank you very much
Best wishes
Relevant answer
Answer
Dear Nelaturi V Raghavaiah,
Yes, that's right. The lending policy of commercial banks is cyclically modified, inter alia, in correlation with cyclical, long-term trends of changes in the economic situation in specific industries and sectors of the economy and in the context of the entire economy.
Thank you,
Regards,
Dariusz
  • asked a question related to Banking and Finance
Question
8 answers
Since mid-2020, when we see a renewed increase in the popularity of cryptocurrencies as a source of easy profit, avoiding transaction costs and escaping from fiat money inflation, the energy costs associated with "mining" Bitcoin were revealed in the media. Energy experts began to carefully assess the functioning of the cryptocurrency market in terms of electricity consumption in relation to the amount of electricity consumed by the economy. It turned out that bitcoin mining costs annually at least as much electricity as a medium-sized country like Finland consumes. If Bitcoin were a country, it would rank in the top 30 worldwide for energy use. I enclose the research results in charts and links to the publication. Meanwhile, in 2021 we are witnessing the emergence of an energy crisis all over the world and an incredible increase in the prices of natural gas and crude oil as a result of climate disturbances, disruptions in the supply chain and broken cooperative ties between international companies. Therefore, what are the prospects for such a phenomenon as cryptocurrencies or other energy-intensive technologies, the use of which is completely against the policy of reducing greenhouse gases and switching to renewable energy on a global scale? Is the true thesis that the growth rate of the BTC market price to USD is comparable to the growth rate of electricity consumption by cryptocurrency miners?
Relevant answer
In this article we look at these issues, I hope you find it of interest.
  • asked a question related to Banking and Finance
Question
11 answers
We see at least two very dangerous features in post-covid China:
1) As we show in the attachments JEE 2020 and ICC 2020, Governments should be very carefull in trying to control prices or fix maximum/minimum thresholds. The price dynamics in complex economies condense a lot of scattered information, are an emergent property, and -under certain circumstances- aid at correcting disequilibria (see the papers attached). Becuase of cumulative wrong centralized decisions, disequilibria are multiplying in the Chinese economy (industrial, construction, energy sectors) and authorities are not allowing prices to show up as correcting re-adjustment signals. This is really dangerous as we show in papers ICC 2020 and JEvEcs 2020 attached (by Almudi et al.).
2) Secondly, as we show in Metroeconomica 2020 (also attached), in a context of increasing prices (shortages of energy and post-covid bottlenecks in global value chains), with high stocks of private debt, and everything developing within an otherwise innovative economy with low (but increasing) interest rates, the probable slight increase in inflation rates expected for the upcoming months will unchain a domino effect, with emergent "big rips" in the socio-economic Chinese system.
1) and 2) may announce a long (a decade) stagnation in the China economy. It seems that the European Union is perhaps the latest worldwide agent in noticing this. China is no longer a clear option. Still, Is China too big to fail?
Relevant answer
  • asked a question related to Banking and Finance
Question
42 answers
In my opinion, the monetary policy coordinated by central banks can not be objectively assessed without taking into account many specific, current determinations describing the condition of financial markets, the issues of financial risk management instruments applied, the condition of the economy and many other macroeconomic factors. The analysis of a particular monetary policy should take into account the dynamic approach of many variables, including cyclical fluctuation reflected in the changes of many economic categories on the financial markets and in the entire economy. A specific monetary policy may be interpreted and evaluated differently depending on many factors surrounding the condition, financial markets and the economy. In support of this thesis, I cite the following various situations surrounding the banking system and the condition of financial markets and the macroeconomic situation in the context of the cyclical nature of the economy:
1. The process of cyclical development of the national and global economy in a multi-annual perspective, which does not develop fully objectively and independently, is only coordinated by actively pursued economic policies in individual countries, primarily through fiscal and financial policy. To this should be added the issue of the growing importance of central banking in banking systems since the 1970s and the processes of globalization, deregulation, liberalization of transactions and the operation of financial markets, applied security instruments and credit risk management, including capital markets.
2. The impact of monetary policy on central banking on economic processes, when this policy is used, for example, to stimulate economic growth in the deep recession of the economic cycle of the entire national economy, in other words, as has been used many times in many countries since the 1970s. also after the appearance of the global financial crisis in September 2008. Initially, the Federal Reserve Bank in the USA applied such an interventionist anti-crisis solution, and then the European Central Bank in the European Union applied analogous interventionist anti-crisis programs. thanks to this, restoring the balance in the economies and restoring economic growth has worked more effectively and faster than if these interventionist anti-crisis programs were not applied.
3. Long-term, the same, analogical, similar to the same formula, the same goals and directions of action, such as monetary policy co-ordinated by a large central bank, which is also of international importance due to the importance of the US economy, ie monetary policy shaped by the Bank Federal Reserve in the USA. This has been the case since the 1990s until the global financial crisis in 2008. Consequently, this particular policy of the Federal Reserve bank before 2008 was considered by many economists to be incorrect, too low interest rates were maintained for a long time, which enabled commercial banks to broaden the liberalization of lending policy, which resulted in granting these loans to persons without creditworthiness when there were no reliable borrowers and the home sales market was growing, prices of real estate and securities on stock exchanges continued to grow speculatively, despite the fact that they were highly overvalued.
In connection with the above, in the current economic reality it is not practically justified to assess the dominant models of applied monetary policies in universal, timeless terms, detached from the specific economic conditions of a given country, from a specific moment in the business cycle, from specific standards of the institution's supervision of the financial system, on the specific quality of the effects achieved in the area of ??the security of the financial system being a derivative of the application of specific solutions and system prudential instruments in the credit risk management process, etc.
On the other hand, it is justified to make objective, scientifically verified assessments of the dominant models of applied monetary policies, but for a specific economic situation, for a given country, for a specific examined and posted financial system functioning in a specific economy, at a specific moment, phase of the economic cycle of the national economy, global situation, specific situation on the capital markets, the level of valuation of securities on stock exchanges, applicable standards and instruments for the security of the financial system, including the effectiveness of supervision institutions over the financial system, including banking, situtions on credit markets, specific scientifically tested and defined standards for the use of bank loans, i.e. level of credit risk for the majority of credit transactions, etc.
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
How do you rate the monetary policy of the central banks?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Relevant answer
Answer
  • asked a question related to Banking and Finance
Question
13 answers
This project of thesis aims to discuss developments in the field of finance driven by technological developments. The thesis discusses the current challenges facing the adoption of many financial technology solutions on a large scale in MENA countries with the aim of enhancing financial inclusion for all residents of the region. In recent years, MENA governments have paid increasing attention to this technology and the cases of its use as a tool for digital transformation; it has been seen as an engine of economic diversification and has been high on the development agendas of many countries in the region.
Which econometric model fits this topic?
Relevant answer
Answer
Yes. Exactly right. The financial technologys are used to boost the financial health of the economy of any country.
  • asked a question related to Banking and Finance
Question
10 answers
When the global financial crisis began in the autumn of 2008, the central banks of some countries, primarily the Federal Reserve Bank in the USA and the European Central Bank in the European Union, undertook specific anti-crisis measures to reduce the negative effects of the financial crisis at the time.
In view of the above, how do you assess the role of central banking in the area of anti-crisis measures in the event of financial and currency crises?
Please reply
Best wishes
Relevant answer
Answer
Dear Emmanuel V Murra,
Thanks for the kind words and positive recommendations of this discussion, in which the debaters formulate their answers to the question: How do you assess the role of central banking in the field of anti-crisis measures in the event of financial and currency crises?
Greetings,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
64 answers
In the area of electronic banking, including mobile banking, commercial banks improve technological solutions for the use of smartphones for the purpose of conducting financial transactions by clients.
Commercial banks spend the most resources on developing security systems, reducing gaps in online banking systems used by cybercriminals and improving IT systems risk management procedures.
The changes taking place in online banking, including mobile banking, are currently determined primarily by the technological progress related to telecommunications and IT devices.
In view of the above, the current question is: Determinants of the development of mobile banking?
Please, answer, comments.
I invite you to the discussion.
Dear Friends and Colleagues of RG
I described the problem of cybercrime in publications:
I invite you to discussion and cooperation.
Thank you very much
Best wishes
Relevant answer
Answer
Technology by E and I transaction
  • asked a question related to Banking and Finance
Question
30 answers
Perhaps in the future the development of electronic, online banks and technology companies developing financial services as fintechs will be implemented in parallel and will lead in many respects to a synthetic model of combining different business concepts of banks and fintechs. In such a situation, it will not be possible to clearly determine who has taken over and dominated the first, or electronic banks or fintechs.
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Is there more competition or synergy between the development of online banks and fintechs?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Relevant answer
Answer
Business, banking, and financial organizations in the USA and Europe are very closely related to Fintech. This is no longer just a connection, but a symbiosis of technology, finance, and commerce. According to the research by IndustryARC’s market analyst, the Fintech market volume exceeded $150 billion last year and continues to grow.
That is, in today’s article we’ve made the research on such related questions:
  • What are the main directions for the development of financial technologies in 2021?
  • Fintech integration: why do the bank and business need it?
  • What do the digital ecosystems mean for the bank, Fintech, and the customer?
  • How to understand in which direction to develop your digital ecosystem and how to position it?
  • asked a question related to Banking and Finance
Question
20 answers
Commercial banking has several hundred years of development history. Fintechs have been developing only since the end of the 20th century, but the development of some fintechs is many times faster than most banks currently operating. This is the main reason why banks are interested in the development of fintechs. In most countries, fintechs are not yet a significant direct competition for commercial banks, but taking into account their dynamic development in the field of new technologies, online settlements and payments, combining information services with financial or other services and e-commerce, with e-commerce , e-business, however, this may change in the future and this competition may increase significantly in the future.
Banks that are not afraid of competition from fintechs usually do not cooperate only by observing new technologies introduced to the online market of financial transactions by fintechs. However, commercial banks that are afraid of competition from fintechs are either interested in this type of cooperation in the field of technology development or take over these entities in capital transactions, including selected fintechs to capital groups managed by a given bank. There have been transactions of this type in which a commercial bank took control of a fintech, which was a dynamically developing startup or a thriving technology company operating in the new online media sector and new techniques for settlements and payments made electronically. Some banks, fearing competition from fintechs, observe their functioning and try to introduce into their business model solutions similar to those that develop fintechs with positive effects.
In view of the above, I am asking you the following question: Do banks cooperate with fintechs?
Please reply. I invite you to the discussion
Relevant answer
Answer
Yes, banks need fintechs to advance technology in banking and finance. Bank staff will not have the capacity to introduce the latest financial technology, except in partnership with these fintech companies at principal level relationship either as a partner or shareholder.
  • asked a question related to Banking and Finance
Question
25 answers
If artificial intelligence is implemented for the online mobile banking, can this banking segment be deprived of employing human capital altogether?
Please reply
Best wishes
Relevant answer
Answer
Dariusz Prokopowicz In my experience, bank employees are needed less and less banking applications, mobility, online services and even financial and credit analyzes are performed using artificial intelligence.
  • asked a question related to Banking and Finance
Question
25 answers
What kind of scientific research dominate in the field of Security of the financial system?
Please, provide your suggestions for a question, problem or research thesis in the issues: Security of the financial system.
Please reply.
I invite you to the discussion
Thank you very much
Dear Friends and Colleagues of RG,
The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:
I invite you to discussion and cooperation.
Best wishes
Relevant answer
Answer
Dear Aref Wazwaz,
Thanks for the link to the publication describing interesting issues of financial systems security.
Best regards,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
137 answers
Advantages of fintechs over traditional banks, considering consumer banking functions...from both the perspectives of banks and customers...
Relevant answer
Answer
I always prefer the traditional banking system.
  • asked a question related to Banking and Finance
Question
26 answers
What kind of scientific research dominate in the field of The development of online banking?
Please, provide your suggestions for a question, problem or research thesis in the issues: The development of online banking.
Please reply.
I invite you to the discussion
Best wishes
Relevant answer
Answer
The SARS-CoV-2 (Covid-19) coronavirus pandemic increased the scale of using the Internet in business activities, increased the scale of the development of e-commerce, online shopping, online settlements and payments. Therefore, I propose the following research topic: The impact of the SARS-CoV-2 (Covid-19) coronavirus pandemic on the development of online and mobile banking.
Best wishes,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
7 answers
Many business companies in internet marketing collect and analyze comments, posts, entries, etc. from social media portals.
It is also done by some financial institutions, banks acquiring additional information about potential borrowers and insurance companies against possible conclusion of insurance contract. Commercially operating companies and financial institutions operate in this area on the border of the law on the protection of personal data.
Until this type of acquisition of information about potential customers is legally regulated, then commercially operating companies and financial institutions will conduct such activity. In addition, the issue of the security of this type of data about users of social media portals is of particular importance, as there have been effective cybercriminal attacks that resulted in the theft of personal data of users of social media portals.
I invite you to the discussion
Relevant answer
Answer
It happens that commercial banks, when verifying the creditworthiness of a potential borrower, view customer profiles on social networks, treating the information on these profiles as an additional source of customer data. Are such banking practices ethical in terms of business?
Thank you, Regards,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
9 answers
Will the development of data processing technology accumulated in the Big Data banking database systems improve the credit risk management process or will it contribute to the development of Shadow Banking and the use of unethical practices for the surveillance of potential borrowers?
Large commercial banks generate high financial surpluses allowing for the implementation of modern integrated teleinformatic internet banking systems, Business Intelligence data analysis systems, data processing platforms in Big Data database systems, etc.
There were already situations of unethical use of modern ICT solutions, analysis of comments on social media portals, during which the bank verified the customer's data entered into the loan application by also scanning information that the potential borrower types in social media portals.
This informal verification took place without the knowledge of a potential borrower and could then be the basis for suing the bank.
However, the bank's client is not always aware of the fact that it can be invigilated in such a way by the public trust institutions that the bank should be.
Of course, these types of cases, which we know from the media is supposedly a margin of entire banking, which can be one of the categories of a new type of unethical practices typical of the so-called Shadow Banking.
However, only part of this type of information gets to the media.
Maybe this is just so-called "the tip of the iceberg" of this problem.
The situation is similar in the situation of cybercriminals' attack on bank IT systems or electronic banking platforms.
If it is possible to keep this type of events secret, then customers do not find out about it.
This is because media only receive information about some of these types of events.
Does any of you conduct research in this area?
If so, I invite you to cooperation.
I am asking for comments
Relevant answer
Answer
Big Data Analytics database and analytical technology can be helpful in the process of collecting and processing large sets of information and data on potential bank customers, including borrowers, enterprises being bank customers, data describing the economic and financial situation of enterprises and factors in their market, industry and competitive environment. etc. In this way, Big Data Analytics technology can be helpful in the context of improving the processes of analyzing the creditworthiness of potential borrowers and in terms of improving the credit risk management process.
Best regards,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
9 answers
Is it better to have a Lot of bitcoins compared to rather having a lot of paper money or savings at the bank ? Thoughts
#cryptocurrency #money #bank
Relevant answer
Answer
Actually many people are using cryptos now to store the value of their money or assets. However, I think cryptos are not good always to store the value because of the volatility.
kindly see the the documentaries of (Plot) YouTube channel in the YouTube, they are talking more about this.
  • asked a question related to Banking and Finance
Question
5 answers
Hi researchers, with all due respect, can you share your valuable insights, suggestions and research (if any)?
Recently, I heard on a news from China that it is very difficult to get your money back from people whose mobile phone batteries are on average lower than 20%. In this regard, I want to pursue research to check what relationship can be found between mobile phone usage pattern and investment in the share market.
My MBA thesis was on the title "The behavioural factors that create herd behaviour in the share market."
Your valuable suggestion will be highly appreciated. Thanks in advance.
Relevant answer
Answer
Interesting topic, All the best
  • asked a question related to Banking and Finance
Question
21 answers
Some supervisors are exceptionally adorable. However, a few colleagues have shared some bitter experiences they encountered with their supervisors.
Experience has it that the relationship between the Student (researcher) and a supervisor (mentor) depends on the zeal and input of the student. The ability to exhibit originality would embrace a smooth process.
To what extent do you Agree / Disagree with my stand? (See below).
1. Have a meeting with your supervisor at the start of the study to understand the "do's" and "don'ts"!
2. Take note of the Memorandum of Understanding for the study.
3. Always be time-bound in your submissions.
4. Follow instructions and respond to queries accurately and promptly.
5. Avoid plagiarism and observe ethical procedures!
Discussions
Per your experience do you think these points when followed, would make the process smooth for students’ success?
Kindly share your view, Add, agree, disagree, and critique.
Relevant answer
Answer
It's an ethical issue. You can either complete your PhD in 3 years or less, or wait until your son got his. Supervisors are paid to "help" their supervisees. If they don't do their job, so they are selfish, careless cheaters not teachers.
  • asked a question related to Banking and Finance
Question
8 answers
We know that the economic situation isn't good in the world because of this pandemic (COVID-19) including Turkey. So recently Turkey has taken some steps for its economy. 1st step: currency swaps with other countries amid this pandemic. After then some increased in the value of lira from the dollar. 2nd step: reinforcing its economy (Implementing long- and short-term economic stimulus based on Turkish lira with low-cost financing programs).
Relevant answer
Answer
Since the start of 2018 Turkish Lira has fallen by at least 35% against the US dollar. There have been concerns in the financial markets about the the Turkish economy.
  • asked a question related to Banking and Finance
Question
5 answers
Title: Mechanisms for Creating Liquidity in a Rural Setting: A Description of Existing Banking and Financial Regulations in Guatemala, Nicaragua, and El Salvador for Using Cattle and Trees as Loan Collateral
So far I have only find two sources citing it but not the actual article. Neither did I manage to find contact details for the author.
Any help would be greatly appreciated.
Relevant answer
Answer
I'm not sure about it.
may be this will help.
  • asked a question related to Banking and Finance
Question
49 answers
Will the share of transactions made with traditional money issued by central banks decline successively due to the development of cryptocurrencies? What are the consequences of this process in a country with large and growing public debt?
More and more large companies are announcing the creation of their own cryptocurrency. Some investment banks, such as JP Morgan, have announced the creation of their own cryptocurrency for settlements with key contractors. Some technology companies operating in the field of ICT and new online media also plan to develop blockchain technology in cryptocurrency applications. For example, the social media portal Facebook also announced the creation of its own criticism called Libra, which the users of the portal will be able to pay for various services available through Facebook. Some investment funds invest their financial capital in some cryptocurrencies.
Whether in the context of the development of cryptocurrencies, the share of transactions made with traditional money issued by central banks will gradually decrease. Will the development of cryptocurrencies and their rapid dissemination not jeopardize the stability of the monetary systems of some countries? If the share of traditional money in total transactions made by citizens will decrease, will the significance of the financial system, including the banking system, also decrease? If there is a large unpaid public debt in a given country and a decrease in the use of traditional money in transactions between entities, can it lead to a serious financial and / or currency crisis? Many countries finance their public finance debt by issuing Treasury bonds in which foreign financial institutions also invest. So, can future cryptocurrencies be used for international settlements in the future? Can the decrease of confidence in the national currency of a heavily indebted country lead to an increase in international settlements using cryptocurrencies?
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Will the share of transactions made with traditional money issued by central banks decline successively due to the development of cryptocurrencies? What are the consequences of this process in a country with large and growing public debt?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Relevant answer
Answer
It’s difficult to answer this question with complete confidence. Perhaps a middle ground needs to be reached; banks need to do more to understand and accommodate the blockchain technology behind cryptocurrency, and the creators of new cryptocurrencies need to consider and appreciate the importance of traditional banking practices. Cryptocurrencies developed on blockchain platforms could prove to be perfectly suitable for the digital age. It is an alternative that is fundamentally different from the existing financial world and it does have the potential to prevail over traditional money.
  • asked a question related to Banking and Finance
Question
22 answers
The basic data used to determine the effectiveness of commercial banks are included in the banks' financial statements. these data relate to the bank's involvement in specific active transactions, necessary to determine the quality of the loan portfolio, to determine the quality of credit, operational, liquidity, debt, operational risk management processes, etc. An IT risk analysis should be added to this. In addition, financial statements also include data to calculate the deposit security ratio, profitability of individual categories of assets and use of available financial resources. This type of data should be combined with individual categories of estimated risk levels measured in correlation to the involvement in individual active operations. However, in the case of the analysis of the investment bank's effectiveness, it should additionally include an analysis based on risk assessment models for investment in derivatives and other capital market instruments. In this regard, many banking procedures were previously unreliably carried out which generated very high levels of credit risks and caused huge financial losses, eg in the Lehman Brothers investment bank, bankruptcy of this bank and the beginning of the global financial crisis in mid-September 2008.
I researched this problem and in my publications I confirmed that it is possible to combine the question of the reliability of banking procedures implemented in the area of risk management with sources of financial crises.
However, I would like to hear your opinion on this matter.
In view of the above, I am asking you the following question: Is it possible to combine the ethics of banking procedures in the field of banking operations with the sources of financial crises?
Please, answer, comments. I invite you to the discussion.
Relevant answer
Answer
Having worked for 30 years in finance, I have no great love for the pretense of ethics of most banks.
  • asked a question related to Banking and Finance
Question
10 answers
We know that with Basel all banks adopt a rating system to evaluate their loans and to calculate their regulatory capital. companies have always had problems with the rating calculated by banks and now with COVID-19 what will happen?
Relevant answer
Answer
It's been 9 months since my last comment. Since then, the sale of loans in banks has decreased. The SARS-CoV-2 (Covid-19) coronavirus pandemic has caused an economic recession, a decline in investment and a decline in demand for economic loans. In addition, the anti-crisis public financial aid addressed to enterprises resulted in an excess of money that did not generate additional investments. Even the lowered interest rates did not help to generate a significant increase in the economic activity of enterprises.
Regards,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
32 answers
In many countries formal rules have been adopted or guidelines have been included in key national legal regulations according to which public debt in the amount of 50%. Gross Domestic Product is interpreted as not generating high risk of domestic debt.
However, in some countries, the public debt in relation to Gross Domestic Product for many years has been at a level well above 100%.
Among these countries are developing countries but also large, rich developed countries.
On the other hand, if such countries are increasingly global, systemic credit risk may grow and if another global financial crisis similar to the one in 2008 could emerge in the future, it could turn into a serious global debt crisis.
In view of the above, let me ask you: Do you think that public debt is 50% to the Gross Domestic Product generates high or low risk of indebtedness of the country?
Please, answer, comments. I invite you to the discussion.
Relevant answer
Answer
Before COVID-19 crisis 50 % of debt to Gross Domestic Product was a high public debt for any country, but nowadays, during coronavirus crisis, and I think, for some time after it, 50 % of country's debt is rather low.
  • asked a question related to Banking and Finance
Question
7 answers
Dear colleagues,
kindly support our global review paper about the use of trees/plantations as part of loan collateral arrangements or for other transactions.
Especially smallholder foresters oftentimes lack access to adequate and affordable financial services. Using their assets (trees) as a business security can ease access to loans. There are various different terms for this approach like tree collateralization, tree pledging, forest asset mortgaging etc.
In addition to searches on scholarly databases we review grey literature as well. Hence, feel free to recommend any type of document, report or article that mentions such approaches. Documents in French or Spanish are also welcome. Please refer to the attached flyer.
Thanks for your kind consideration,
Marcel Starfinger
TU Dresden
&
Dr. Yitagesu Tekle
European Forest Institute (EFI)
Relevant answer
Answer
Many businesses carry rare wood as stock, which is part of the value of the business and can be used as collateral for loans
  • asked a question related to Banking and Finance
Question
6 answers
Dear Friends and Colleagues of RG
Please provide links to the results of the study, which will answer the following question:
How strong is the correlation between the change in the economic and financial situation of enterprises and the credit policy of banks?
Have you studied the correlation between the change in the rate of economic growth of the country, economic and financial condition of business entities, income of citizens, corporate investment, investment risk, liquidity risk, debt, creditworthiness of enterprises, etc. and the changing lending policy of banks commercial enterprises that provide business loans and consumer loans to citizens?
Do you think this correlation is correct? Is the scope of this correlation correct as compared to other determinants of the changing lending policy?
What significance is assigned to this correlation in the context of the processes of improving bank credit risk management in commercial banks?
Please reply
Best wishes
Relevant answer
Answer
Dear In 2020, due to the economic downturn caused by the SARS-CoV-2 (Covid-19) coronavirus pandemic and the financial support provided under anti-crisis state aid, the amount of economic loans taken by enterprises from commercial banks dropped significantly. Has a similar situation occurred in your country?
Best wishes,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
32 answers
Has the scale and instances of dissonance increased since the 1970s, and the disparity between the macroeconomic situation and the economic situation of a particular national or global economy, including economic growth, etc., and the situation on capital markets, including securities markets?
The above discussion inspired me to the following considerations: Well, since the development of the deregulation process, the increase in the globalization of financial markets, the introduction to the financial markets of many derivatives without full supervision by financial supervision institutions, i.e. since the 1970s the frequency has increased and the scale of emerging financial and economic crises in various parts of the world. At the same time, perhaps the business cycles are increasingly influenced by the monetary policy of central banks and fiscal policies of governments mainly of the world's largest economies. The result may be a growing discrepancy, a growing disproportion between the macroeconomic situation and the situation of a particular national economy or global economy, including economic growth, etc., and the situation on capital markets, including securities markets.
What do you think about this topic?
What is your opinion on this topic?
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Has the scale and instances of dissonance increased since the 1970s, and the disparity between the macroeconomic situation and the economic situation of a particular national or global economy, including economic growth, etc., and the situation on capital markets, including securities markets?
Please reply
I invite you to discussion
Thank you very much
Best wishes
Relevant answer
Answer
Thank you for your detailed analysis.
  • asked a question related to Banking and Finance
Question
4 answers
What's the effect of PMJDY in financial inclusion in India? How many bank accounts are open before and after PMJDY?
Relevant answer
Answer
A lot of Savings accounts have been added to the Banking System, but upto 70% of them remain Dormant.
  • asked a question related to Banking and Finance
Question
15 answers
Existing tax havens, to which many companies from different countries transfer their fictitious or real offices to avoid tax system functioning in a given country is now a seriously global problem. Internationally operating large companies that achieve high profits thus avoid paying taxes and then governments to balance the budgets of countries raise taxes for the population, which usually earns little. In this way, in many countries, the middle class since the 1960s was significantly deprived while 1 percent. The most-earning citizens in developed and developing countries have the majority of goods that modern economies are equipped with. The liberalization and deregulation in economic and financial systems since the 1970s, instead of generating a diversification in income, has increased this diversity. Even the last global financial crisis of 2008, generated mainly by violations of investment banking procedures, significantly contributed to the diversification of income between the middle class and the highest earners class. Unfortunately, instead of improving the functioning of investment banking, it was possible to continue the development of these entities according to the standards from before the global financial crisis.
In view of the above, the current question is: Is the escape of large companies to tax havens a problem for public finances of the state?
Please, answer, comments. I invite you to the discussion.
Relevant answer
Answer
Thank you sir for your response. Absolutely well stated. Its impact on the country finance is enormous. Tighten the tax system is the answer and rendering appropriate punishment to individual and firm participant in order to deter future occurrence.
  • asked a question related to Banking and Finance
Question
25 answers
Companies were already in crisis before the pandemic. What will happen now that many workers are layoffs and sales have fallen?
Relevant answer
Answer
Many businesses operating in sectors where sales revenue has decreased due to the SARS-CoV-2 (Covid-19) coronavirus pandemic, will report either financial losses or small gains in 2020 reports. The scale of the losses will be correlated with many factors. Among others, with the following factors:
1. The scale of correlation between the development of the SARS-CoV-2 (Covid-19) coronavirus pandemic and the consumption of specific types of products and services by citizens.
2. Possibilities of developing sales for citizens of particular types of products and services via the Internet.
3. The scope of time and the level of rigors for the introduced lockdown of the economy, i.e. the legally required temporary closure of shopping centers, service plants, restaurants, hotels, cinemas, museums, city parks, schools, kindergartens, offices, etc.
4. Scale of citizens' compliance with state-established anti-pandemic and sanitary safety instruments (eg wearing face masks, home quarantine, restrictions on the movement of citizens in public places, etc.).
5. Information policy shaped by public institutions and central states dealing with the sphere of public safety and health, and information on the SARS-CoV-2 (Covid-19) coronavirus pandemic disseminated socially through citizens on social media portals.
6. The level of financial support for enterprises operating commercially by the state, from the state's public finance system, in order to maintain their continuity of operation during the pandemic, despite the real decline in the scale of economic activity (as part of the interventionist socio-economic policy and the so-called Anti-Crisis Shields).
7. The period of the SARS-CoV-2 (Covid-19) coronavirus pandemic, the scale of the pandemic development rate, the number of new coronavirus infections and deaths caused by severe Covid-19 disease. Best wishes,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
35 answers
Could you know what are Historical diseases / pandemics in the past reflected on Global economy and Financial markets in the past?
like Spanish influenza that spread in 1918 and reached peak in 1920 impacted on the global economy?
There were another pandemics in the past had significant impact on the global economy and/or financial markets ?
There were many and many pandemics (e.g., Ebola, SARS 2003, H1N1, .... etc)
So, which one or more of them have significant impact on Economy / financial market even globally or in specific countries (i.e., SARS 2003 impacted on China's Economy)
Kindly, Let's share and discuss
Thanks in advance
Ahmed
Relevant answer
Answer
The Spanish flu has a detrimental impact on the economy. Swine flu, although considered an epidemic instead of a pandemic, has an adverse effect on USA economy. Basically pandemics and epidemics resulted in deaths and unemployment which led to a reduction in consumer spending and thus an imminent decline in economics performance.
  • asked a question related to Banking and Finance
Question
21 answers
How do you assess the processes of globalization of financial and banking systems in the context of the analysis of the sources of the global financial crisis of 2008?
Please reply
Best wishes
Relevant answer
Answer
Magnitude of international investors, and FDI
  • asked a question related to Banking and Finance
Question
13 answers
The study of the functioning of securities markets is particularly important in the context of the analysis of the effective functioning of modern economies. It is particularly important to limit the systemic investment risk and strengthen the instruments of financial supervisors to reduce the likelihood of further global financial crises.
In view of the above, I would like to ask you: Analysis of the functioning of securities markets?
Please, answer, comments. I invite you to the discussion
Relevant answer
Answer
Dear Hazim Al Dilaimy, Anatolii Solovev, Er Sir Soumitra Kumar Mallick, Thank you very much for participating in this discussion. Thank you for the proposed interesting issues in the field Analysis of the functioning of securities markets?
Thank you very much for the sent suggestions of interesting topics, research issues, etc. related to this issue.
Thank you very much and best regards, Have a nice day,
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
8 answers
The level and organization of the financing system for research and development is one of the most important development-related issues in contemporary knowledge-based economies.
(The continuation of these considerations can be found in the comments below).
In view of the above, the current question is: The issue of financing research and development works from the funds of the national public finance sector?
Please, answer, comments. I invite you to the discussion.
Relevant answer
Answer
Revered Professor Dariousz Prokopowicz,
This is my opinion. The finance for R&D is to be allocated by the Government that is usual practice but now a days the Private Organisations are ready to find for R&D in order to strengthen the system functioning well.
It is possible in Developed Countries where as in the Developing Countries situation are totally different. In such case, it is welcomed to finance from Private Institutions also.
Regards
Senapathy
  • asked a question related to Banking and Finance
Question
9 answers
I am doing frontier analysis of banks and I calculated the robust efficiency scores for each of the bank. Now I want to run a bootstrap truncated regression with efficiency scores as dependent variable to examine their relationship with characteristics of banks. How can I run the method proposed by simar and wilson (20007) in R. Please help in this regards.
Relevant answer
Answer
A Latif Patwary You can use the "lt" function from this package https://cran.r-project.org/web/packages/truncSP/truncSP.pdf if you want to only use truncated bootstrapped regression.
However, if you want to execute simar and Wilson(2007,2011) two step bootstrapping algorithm with environment variables then use "dea.env.robust" from from https://cran.r-project.org/web/packages/rDEA/rDEA.pdf.
if you want to run a simple truncated regression then use "truncreg" function from https://cran.r-project.org/web/packages/truncreg/truncreg.pdf
Hope this will help you. All the best.
  • asked a question related to Banking and Finance
Question
9 answers
Hi everyone,
I am planning on constructing a Fama french 3 factor model for a period from 1.1.1998-31.12.2015 for a portfolio of about 120 stocks. I have collected the monthly returns for each stock over 36 months since their IPO. The process of doing a Fama french 3 factor model for a single stock is very straight forward as seen in this video: https://www.youtube.com/watch?v=b2bO23z7cwg
However, how should I proceed with a portfolio with returns that all have different starting dates (as each firms have a different IPO date)?
My tough was as follows:
  1. Calculate the average 1 month return, 2 month return,, 3 month return, ….36 month return from all the stocks in the portfolio.
  2. Calculate the 1 month average, 2 month average, 3 month average, ….36 month average of the Rf, HML, SMB, Mkt-Rf
  3. Subtract 1 month average Rf from average 1 month return, repeat until the 36th month.
  4. Proceed with running the regression.
Many papers, such as the one by Levis (The Performance of Private
Equity-Backed IPOs), have used the Fama French 3 factor model but do not explain the mechanics behind the process.Any help is more than appreciated.
Any help is greatly appreciated
-Sebastian
Relevant answer
Answer
Hello, I have writing research does ESG factor impacts stock's market return. I am conducting this research with three factors of the FAMA french model and the fourth-factor being ESG factor.
(Stock Return-Rf) = b0 + b1 (RM- Rf) + B2 HML + b3 SMB + B4 ESG + e
I want to create this analysis at the market level.
I can create this model at the individual stock level, however, I am unable to use this model at the market level because, fame french three factors are constant for all the stocks, so I can't select it as my independent variable.
Dependent Variable:
  • Stock returns - 60 companies stock's yearly returns.
Independent Variable:
  • Market factor (CAPM): FTSE 100/S&P100 - However, market returns would be common for each stock. So, this variable is not changing with each stock as the market return is common for all stocks. 
  • Firm Size (SMB): I can calculate the SMB factor using six portfolios formed using Size and Book to market value. However, this factor will also be common for each stock. Hence this variable is not changing as the change in the dependent variable.
  • Book to Market Value (HMB): I have calculated the HMB factor using six portfolios formed using Size and Book to market value. However, this factor will also be common for each stock. 
  • ESG Factor: I have an ESG score of all stocks for five years. Now, this factor is changing each year with a change in stock returns
Is it possible to use FAMA french factor at market level?
  • asked a question related to Banking and Finance
Question
7 answers
As a part of various financial research initiative, we need different types of dataset. This question is asked for identifying the online sources of financial data both free and paid version. This information can help every researchers to locate Online Directory or data bank for financial and economic analysis.
Relevant answer
Answer
OECD, UNCTAD, Groningan, Penn World data and Federal Reserve Economic Data FRED St. Louis Fed,
  • asked a question related to Banking and Finance
Question
33 answers
We are looking at a pandemic that will have consequences both in the short and medium and long term. In particular, we need to understand the reaction of financial markets to an event that affects the whole world and not individual countries, as has happened in past years.
📷
Relevant answer
Answer
We have a working paper on this topic joined with Elena Shakina and Iuliia Naidenova : https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3574774
We'd be happy to receive you comments!
  • asked a question related to Banking and Finance
Question
26 answers
There are main categories of financial markets like stock markets, bond Markets, sukuk, .. Etc
Kindly, could you write what are all other categories of financial markets with the main references which discuss the details of financial markets or something if them
Thanks for your kind consideration
Regards
Ahmed
Relevant answer
Answer
Dear Ahmed,
The attached document is part of my class notes in Investments Course.
However, if you need some references, below are some potential ones (Research Papers, Books, and Textbooks):
1. Al Janabi, Mazin A. M., and Arreola Hernandez, Jose, Forecasting of dependence, market and investment risks of a global index portfolio”. Journal of Forecasting, Vol. 39, No. 3, pp. 512-532, 2020. [Publisher: Wiley-Blackwell].
2. Al Janabi, Mazin A. M., Ferrer, Roman, and Shahzad, Syed Jawad Hussain, “Liquidity-adjusted value-at-risk optimization of a multi-asset portfolio using a vine copula approach”. Physica A: Statistical
3. Al Janabi, Mazin A. M., Grillini, Stefano, Sharma, Abhijit, Ozkan, Aydin, “Pricing of time-varying illiquidity within the Eurozone: Evidence using a Markov switching liquidity-adjusted capital asset pricing model“. International Review of Financial Analysis, Vol. 64, pp. 145-158, 2019. [Publisher: Elsevier, Inc.]
4. Al Janabi, Mazin A. M., “Derivatives Securities in Emerging MENA Markets: Structuring Lessons from other Financial Markets”, Journal of Banking Regulation, Vol. 13, No. 1, pp. 73-85, 2012. [Publisher: Palgrave Macmillan Publishers Ltd.].
5. Al Janabi, Mazin A. M., “Internal Regulations and Procedures for Financial Trading Units”, Journal of Banking Regulation, Vol. 9, No.2, pp. 116-130, 2008. [Publisher: Palgrave Macmillan Publishers Ltd.].
6. Al Janabi, Mazin A. M., “On the Inception of Sound Derivative Products in Emerging Markets: Real-World Observations and Viable Solutions”, Journal of Financial Regulation and Compliance, Vol. 14, No. 2, pp. 151-164, 2006. [Publisher: Emerald Group Publishing Limited].
7. Al Janabi, Mazin A. M., “On the Use of Value-at-Risk for Managing Foreign Exchange Exposure in Large Portfolios”, Journal of Risk Finance, Vol. 8, No. 3, pp. 260-287, 2007. [Publisher: Emerald Group Publishing Limited].
8. Al Janabi, Mazin A. M., “Internal Risk Control Benchmark Setting for Foreign Exchange Exposure: The Case of the Moroccan Dirham”, Journal of Financial Regulation and Compliance, Vol. 14, No. 1, pp. 84-111, 2006. [Publisher: Emerald Group Publishing Limited]
9. Al Janabi, Mazin A. M., “Foreign Exchange Trading Risk Management with Value at Risk: Case Analysis of the Moroccan Market”, Journal of Risk Finance, Vol. 7, No. 3, pp. 273-291, 2006. [Publisher: Emerald Group Publishing Limited].
10. Al Janabi, Mazin A. M., “Optimal Commodity Asset Allocation with a Coherent Market Risk Modeling”, Review of Financial Economics, Vol. 21, No. 3, pp. 131-140, 2012. [Publisher: Elsevier, Inc.]
11. Al Janabi, Mazin A. M., “Optimal and Investable Portfolios: An Empirical Analysis with Scenario Optimization Algorithms under Crisis Market Prospects”, Economic Modelling, Vol. 40, pp. 369-381, 2014. [Publisher: Elsevier, Inc.]
12. Al Janabi, Mazin A. M., Arreola Hernandez, Jose, Berger, Theo, Khuong Nguyen, Duc, “Multivariate Dependence and Portfolio Optimization Algorithms under Illiquid Market Conditions”, European Journal of Operational Research, Vol. 259, No. 3, pp. 1121-1131, 2017. [Publisher: Elsevier, Inc.]
13. Al Janabi, Mazin A. M., Khuong Nguyen, Duc, Arreola Hernandez, Jose, Hammoudeh, Shawkat, Reboredo, Juan Carlos, “Global Financial Crisis and Dependence Risk Analytics of Sector Portfolios: A Vine Copula Approach”, Applied Economics, Vol. 49, No. 25, pp. 2409–2427, 2017.[Publisher: Routledge; Taylor & Francis Group].
14. Al Janabi, Mazin A. M., “Liquidity Risk Management in Emerging and Islamic Markets in Post-Financial Crisis in Gulf Cooperation Council”, in M. Kabir Hassan, University of New Orleans (Ed.), The Edward Elgar Handbook of Empirical Studies on Islam and Economic Life, 2017. [Publisher: Edward Elgar Publishing]
15. Al Janabi, Mazin A. M., “Value at Risk Prediction under Illiquid Market Conditions: A Comparison of Alternative Modeling Strategies”, in Buchanan, Bonnie, Nugyyen, Duc Khuong, and Boubaker, Sabri (Eds.), Risk Management in Emerging Markets: Issues, Framework and Modeling, 2016. [Publisher: Emerald Group Publishing Limited]
16. Al Janabi, Mazin A. M., Khuong Nguyen, Duc, Arreola Hernandez, Jose, Hammoudeh, Shawkat “Time lag dependence, cross-correlation and risk analysis of U.S. energy and non-energy stock portfolios”, Journal of Asset Management, Vol. 16, No. 7, pp. 467-483, 2015. [Publisher: Palgrave Macmillan Publishers Ltd.]
17. Al Janabi, Mazin A. M., “Scenario Optimization Technique for the Assessment of Downside-Risk and Investable Portfolios in Post-Financial Crisis”, Int. J. of Financial Engineering (Formerly, Journal of Financial Engineering), Vol. 2, No. 3, pp. 1550028-1 to 1550028-28, 2015.[Publisher: World Scientific Publishing Co., Inc.]
18. Al Janabi, Mazin A. M., “Tactical Risk Analysis in Emerging Markets in the Wake of the Credit Crunch and Ensuing Sub-prime Financial Crisis”, in Nugyyen, Duc Khuong, Arouri, Mohamed and Boubaker, Sabri (Eds.), Emerging Markets and the Global Economy: A Handbook, pp. 413-446, 2014. [Publisher: Elsevier, Inc.].
19. Al Janabi, Mazin A. M., “Risk Analysis, Reporting and Control of Equity Exposure: Viable Applications to the Mexican Financial Market”, Journal of Derivatives & Hedge Funds, Vol. 13, No. 1, pp. 33-58, 2007. [Publisher: Palgrave Macmillan Publishers Ltd.].
20. Al Janabi, Mazin A. M., “Trading Risk Management: Practical Applications to Emerging-Markets”, in Motamen-Samadian S. (Ed.), Risk Management in Emerging Markets, Palgrave/MacMillan, United Kingdom, pp. 91-136, 2005. [Publisher: Palgrave Macmillan Publishers Ltd.].
21. Al Janabi, Mazin A. M., “Financial Risk Management: Applications to the Moroccan Stock Market”. Consulting/Advisory Book in Financial Trading Risk Management, ISBN: 9954-413-47-2, Al Akhawayn University in Ifrane (AUI), Ifrane, Morocco, 2005. [Publisher: AUI University Press].
22. Al Janabi, Mazin A. M., “Formulation of Successful Derivatives Products in Emerging-Markets”. Consulting/Advisory Book in Financial Risk Management, ISBN: 9954-413-30-8, Al Akhawayn University in Ifrane (AUI), Ifrane, Morocco, 2003. [Publisher: AUI University Press].
23. Fundamentals of Investments: Valuation & Management, Jordan & Miller, 5th Edition (2010), McGraw-Hill International Edition.
24. Investments: Analysis and Management Charles P. Jones, (2007), 10th edition, John Wiley and Sons.
25. Benninga, Simon, Financial modeling, 3rd edition, The MIT Press, Cambridge, Massachusetts, 2008.
26. Robert Haugen, Modern Investment Theory, 5th Edition, Prentice Hall, 2001.
27. Alexander, Sharpe, Bailey, Fundamentals of Investments, 3rd Edition, Prentice Hall, 2001.
28. Reilly, Frank, Keith C. Brown, Investment analysis and portfolio management, South-Western College Pub; 10th edition, 2011.
29. Chincarini, Ludwig B., Quantitative Equity Portfolio Management: An Active Approach to Portfolio Construction and Management (McGraw-Hill Library of Investment and Finance), 2006.
30. Zvi. Bodie, Alex Kane, Investments, McGraw-Hill Education; 10th edition, 2013.
31. Burton, G., Malkiel, A Random Walk Down Wall Street, W. Norton & Company; 9 edition, 2007.
32. Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, William N. Goetzmann, Modern portfolio theory and investment analysis, 9th edition. Wiley, 2014.
33. Saunders A. and Cornett M., Financial Markets and Institutions (The Mcgraw-Hill / Irwin Series in Finance, Insurance and Real Estate) 6th Edition, 2014.
34. Jacque, Management and Control of Foreign Exchange Risk, Kluwer Academic Publishers, 1996.
35. Giddy, Global Financial Markets, D.C. Heath, 1994.
36. Dufey and Giddy, The International Money Market, Prentace Hall, 2nd edition, 1994.
37. Brealey, Myers and Marcus, Fundamentals of Corporate Finance, McGraw-Hill.
38. Brealey and Myers, Principles of Corporate Finance, McGraw-Hill.
39. Ross, Westerfield and Jordan, Essentials of Corporate Finance, McGraw-Hill.
40. Chambers, Lacey, Modern Corporate Finance, Theory and Practice, Pearson Education, Addison Wesley.
41. Rao, Financial Management: Concepts and Applications, South-Western College Publishing.
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
EGADE Business School, Tecnologico de Monterrey,
Santa Fe Campus, Mexico City, Mexico.
  • asked a question related to Banking and Finance
Question
3 answers
The Data is for Academic Research
Relevant answer
Answer
Thanks
  • asked a question related to Banking and Finance
Question
4 answers
I am currently assisting on a research on cross border capital flows.
A common problem seems to be that both the acquisition of assets and valuation effects determine the cross border asset holdings as , for example, reported in the CPIS data. Hobza and Zeugner use the BoP statistics on portfolio investments to derive valuation effects on portfolio debt and equity (change in asset holdings minus acquisitions) (2014).
I am wondering if the valuation effect could also be estimated because I do not only want to distinguish between portfolio debt and equity but also between different types of instruments.
For instance, between different debt maturities.
Relevant answer
Answer
Valuation effects depend on inflation, exchange rates and liquidity (on how tightly held the asset is).Different financial markets have different levels of liquidity.
  • asked a question related to Banking and Finance
Question
16 answers
Banks can co-operate with Fintech to improve the performance. Can you suggest some studies on the ways and scopes of the co-operation?
Any help is appreciated.
  • asked a question related to Banking and Finance
Question
21 answers
In your country, do banks cease to finance investment projects related to traditional energy based on the burning of minerals?
Do banks start to finance environmentally friendly investment projects in your country, thus supporting the processes of transformation of the economy towards the implementation of sustainable pro-ecological development?
Please, answer, comments.
I invite you to the discussion.
Best wishes
Relevant answer
Answer
Dariusz Prokopowicz till now, Iraqi banks could not launch such projects. The reason behind that is business environment in Iraq, where no eco-friendly project.
  • asked a question related to Banking and Finance
Question
10 answers
How behavioral economics can be used to study investor behavior in capital markets, including securities markets?
How is it that in these markets every several or a dozen or so years, there is a high re-evaluation of the valuation of financial instruments, assets, including company shares? What is the issue of the effect of the sheep's rush, which to some extent is often inspired by the appropriately constructed, liberalized offer of products and services of financial institutions?
Besides, how does it fit into the issue of the cyclical nature of economic processes, ie the volatility of economic growth of entire national economies in the long-term perspective? In addition, the issue of the various state intervention instruments applied by national governments is also important, some of which also act on consumer behavior of small investors and shareholders.
Considering anti-crisis, counter-cyclical, interventionist monetary policies based on low interest rates and central banks buying programs for assets lost from commercial banks, it is reasonable to study the potentially high level of state intervention in the financial markets. In connection with the liberalization of the functioning of capital markets and increasingly emerging financial crises since the 1970s, the scale of active interventionist monetary policy of central banking is growing, but also in relation to capital markets, including securities markets. Therefore, deregulated and indirectly subjected to potential anticyclical state intervention, capital markets, including securities markets, are increasingly losing balance, falling into extreme market re-evaluation and undervaluation of valuations of securities, and consequently growing systemic investment, credit, etc. risks and increasingly emerging financial crises.
In view of the above, I would like to ask you: Behavioral economics and interventionist monetary policy and the cyclically changing situation in the securities markets?
Please, answer, comments. I invite you to the discussion
Relevant answer
Answer
Dariusz Prokopowicz initially, the new financial theory suggested that investors psychology have the great impact on securities prices. Investors biases and behavioral pricing models focus on how to deal with such matters in real world. Therefore, we can be conclude that future works could be take in consideration the role of behavioral economics.
  • asked a question related to Banking and Finance
Question
48 answers
The extent of the damage to the global economy caused by novel coronavirus COVID-19 moved further into focus as UN economists announced a likely $50 billion drop in worldwide manufacturing exports in February alone.
Is this a road to recession, or we should expect a speedy recovery after the virus is gone?
Relevant answer
Answer
Yes, world economy is at risk due to outbreak of coronavirus.
  • asked a question related to Banking and Finance
Question
38 answers
Several countries have taken concrete steps or announced their intentions to launch a CBDC. As a digital currency, a CBDC’s most obvious benefit is faster, cheaper, and more efficient payments, both domestically and cross-border. In addition, a CBDC also reduces costs of making physical money. Supported with the blockchain technology, a CBDC is more difficult to counterfeit than paper notes and coins. CBDC also makes it easier for government agencies to fight criminal activities such as tax evasion and bribery.
Turkey became one of the latest countries to declare the development of a CBDC. To be completed by the end of 2020 as part of the Annual Presidential Program, the pilot for the digital Lira includes the development of a software platform for instant payment.
Relevant answer
Answer
70% of central banks surveyed are engaged in some type of CBDC exploration - France, Singapore, China, Canada, Marshall Islands are some of the countries. Benefits include digital currency could provide a real time picture of economic activity in a country or region as well as provide more accurate and timely economic data for GDP estimates than are available today. Other benefits are fighting money laundering and corruption where the money trail is clearer.
  • asked a question related to Banking and Finance
Question
11 answers
We would appreciate someone installing our authentication system, and giving us feedback on various aspects like ease of installation, user experience, bugs (hopefully, none...).
We will give you a free licence for an unlimited number of users and unlimited number of installations. Ideally, we'd like to test with about a hundred users, but any number will do in practice.
You'll need to have a Linux or Sun (SPARC) Solaris system for the main server, but user connections can be from any device, running any O/S - including smartphones, tablets, etc.
You'll also need an Oracle database. You can download Oracle 11g from their website, for free.
Installation takes about an hour, plus the time to migrate any existing users - for which we can supply a free tool.
Thanks in advance.
Relevant answer
Answer
Dear Mark,
You may like to read "Analysis of Authentication Techniques Adopted by End Users in Real-Life...", published in Proceedings of International Conference on ICT for Sustainable Development pp 99-107. This may be useful to you. Link is as under:
With best wishes,
Dr Kuntal Patel
Author: Self-Study Websites
  • asked a question related to Banking and Finance
Question
12 answers
Kristalina Georgieva said new IMF research, which compares the current economy to the “roaring 1920s” that culminated in the great market crash of 1929, revealed that a similar trend was already under way.
While the inequality gap between countries had closed in the last two decades, it had increased within countries, she said, singling out the UK for particular criticism.
“In the UK, for example, the top 10% now control nearly as much wealth as the bottom 50%. This situation is mirrored across much of the OECD (Organisation for Economic Co-operation and Development), where income and wealth inequality have reached, or are near, record highs.”
She added: “In some ways, this troubling trend is reminiscent of the early part of the 20th century – when the twin forces of technology and integration led to the first gilded age, the roaring 20s, and, ultimately, financial disaster.”
She warned that fresh issues such as the climate emergency and increased trade protectionism meant the next 10 years were likely to be characterised by social unrest and financial market volatility.
What do you think will happen next?
What can be done to prevent another Great Depression?
Relevant answer
Answer
History is repeating, concerning its Sisyphean patterns. The economic growth engine of the future, concerning a new conjuncture, is everything related to human health (e.g. eco-bio-medi-tech). However, most times the decision makers stick to old economic paradigms, opening the pathway for revolution and war. Muddling through is always better, but this requires meta-prudence and this seems to be a seldom gift in political economy, resp. decision-making. Not every greater societal conflict must end up in the same negative patterns and can find peaceful solutions, e.g. new economic bargaining models, monetary reform, alternative conjunctures. As the current exponentiality is unstable (as all exponential trans-formations in nature), it must end up in a higher social order, most possibly singularity. A win/win economy is needed to avoid violent global escalations; everybody, who understands a bit the human range of game behavior, knows that the jackpot of real life rotates via marginal stages, i.e.the first cup of water in the desert is the most precious.
  • asked a question related to Banking and Finance
Question
17 answers
In relation to the expansive monetary policy that has happened during the last years, according to the economic theory, an expansion of the monetary mass and a decrease in interest rates should have caused a notable increase in inflation, a circumstance that has not happened. Can you tell me reasons or ideas so it has not been like that? Thank you in advance
Relevant answer
Answer
Dear Colleagues and Friends from RG,
The above question inspired me to propose reflections and inspire discussions on the following issues:
The role of monetary policy of central banking in the context of financial system security.
On the basis of the above considerations and conclusions drawn from the discussion on interesting issues discussed, I formulated the following thesis that the impact of central banking monetary policy on shaping the security of the financial system may be particularly significant. Below I have described the key determinants confirming the formulated research thesis. To the above discussion, I would like to add the following conclusion formulated as a summary of my previous considerations on this topic: the impact of central banking monetary policy on shaping the security of the financial system. The above discussion inspired me to formulate the following question:
What can be the impact of monetary policy of central banking on shaping the security of the financial system?
Monetary policy shaped by central banks has a particularly significant impact on the lending policies of commercial banks, including the classic deposit-lending banking model and investment banks operating, among others, on the credit and interbank loan markets. Central banks, in order to control the level of systemic credit risk, influence through monetary policy instruments the lending activity of commercial banks, the revival of lending at banks in the situation of recession in the national economy, and enforce a reduction in the scale of loans granted to various types of business entities and the population when the bank the central states that the level of business credit and consumption is too high and the repayment of loans is carried out by borrowers with increasing delays and when the quality of loan portfolios in commercial banks decreases. However, over the past several decades, financial systems have changed significantly, the role of central banks has increased, currency and derivative markets have developed particularly dynamically.
In connection with the development of economic globalization in international financial systems, the increase in the scale of mergers and acquisitions in the field of capital transactions in the financial sector, which leads to the emergence of larger and larger banks operating globally, in addition to deregulation in financial markets, the growing importance of monetary policy in the context of interventionist economic policy, the development of international liquid exchange rate systems on currency markets, the development of derivatives used not only to hedge other financial transactions but also to speculative activities on capital markets, etc. since the 1970s, systemic credit risk has been increasing and the frequency and scale of domestic and supranational occurrences financial and economic crises. In connection with the increase in systemic credit risk, the importance of effective operation of financial supervision institutions and improvement of the credit risk management process is increasing.
In the 1990s, serious mistakes were made in allowing investment banking to be combined with the classic deposit and credit banking system in the Anglo-Saxon financial system, thus lifting restrictions and instruments ensuring a high level of system security in commercially operating financial systems. These types of erroneous changes in prudential regulations that reduce the scope of effective operation of financial supervision institutions and credit risk management systems increase the likelihood and scale of negative effects of subsequent financial and economic crises. To this should be added the serious mistakes that were made in shaping monetary policy and allowing for a rapid increase in public debt in public finances even before the global financial crisis emerged in autumn 2008. In the context of these facts and the increase in systemic credit risk, there are considerations whose main purpose is to verify the research thesis on the question of the possible excessive growth of the commercially operating financial system in modern economies and on an international scale, far above the needs and macroeconomic conditions of currently functioning national economies. Therefore, in order to verify this type of theses, one should consider the answer to the following question: Is the over-expanded commercially operating financial system operating more and more speculative on financial markets, including not only credit but also securities, derivatives and currency markets, speculative investments in raw materials, etc. in modern national economies and on a global scale may displace classically implemented investments involving the implementation of investment projects leading to the creation of real, direct, sustainable, investment financial economic goods by enterprises (financed from non-bank financial sources) and by the state (investments financed from public funds, with particular emphasis on national economies with their own national currency)?
The process of improving credit risk management is implemented mainly at the level of a specific commercial bank. Central and supervisory institutions, which mainly include central banking and banking supervision institutions, may affect some aspects of this process, correct possible excessive levels of systemic credit risk, especially in a situation where a specific bank unreliably implements prudential procedures in the field of lending activity or in a deteriorating situation loan portfolio quality caused by the recession in the domestic and possibly global economy. Before the emergence of the global financial crisis in autumn 2008, there was an unwritten rule in some financial environments that a large banking entity could not fail. The declaration of bankruptcy by one of the largest investment banks, Lehman Brothers, whose bankruptcy began with the global financial crisis, questioned this type of opinion regarding financial system entities.
To analyze the correlation of the effectiveness of the process of improving the credit risk management process in commercial banks and the shaping of monetary policy by the central bank, the key issue is the relationship between central banking and commercial banking that has been built over the years. For example, the issue of implementing central bank assistance functions for commercial banks in the event of a significant increase in liquidity and debt risk, problems with the effective management of assets and liabilities and / or in the case of high risk of bankruptcy. In such a situation, a commercial bank may ask the central bank for help in the form of low-interest loans, interest-bearing loans on preferential terms, while increasing the scope of financial management control. In addition, the possibility of buying commercial junk securities and other assets and outstanding loans from banks. This type of central banking assistance activity towards commercial banks, including investment banks, has been used on a large scale since September 2008, i.e. since the beginning of the development of the largest global economic crisis in the history of global financial crisis. However, it is possible to diagnose situations in which as part of this assistance activity of the central bank towards commercial banks, including investment banks, the moral risk and disregard of the principles, methods and procedures of the banking risk management process, including credit risk management, liquidity risk, may be neglected. debt risk and other risk categories.
For example, if central banking suggests to commercial banks, including investment banks operating on capital markets, that in the event of a financial crisis it will help to eliminate the potential risk of bankruptcy of many entities of the financial system, then how these declarations translate into an approach to improving the credit risk management process and to comply with banking procedures regarding lending and securities operations and to comply with good business practices? In my opinion, such unwritten declarations can increase moral risk and reduce pressure and the need to improve credit risk management processes. Does any of you examine this issue in the context of analyzing sources, factors of financial and economic crises? I am researching this issue and invite you to cooperation. I described the results of my research in scientific publications that are available on the Research Gate portal. I invite you to cooperation.
In line with the above, in my opinion, the impact of monetary policy of central banking on shaping the security of the financial system can be significant. In the past, there have been such situations that the erroneous monetary policy of central banking has significantly contributed to the lowering of the level of security of the financial system and has become one of the factors causing the financial crisis. This was the case at the end of the 20th century and the beginning of the current 21st century, which led to the generation of the global financial crisis in 2008.
Do you agree with me on the above matter?
I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.
Thank you very much
Best wishes
Dariusz Prokopowicz
  • asked a question related to Banking and Finance
Question
50 answers
What kind of scientific research dominate in the field of credit risk management?
The most important issue is the credit risk management for loans granted to commercial banks and the adjustment of credit policy to the quality of the loan portfolio, the clients' economic and credit standing, borrowers, business climate, customer incomes and changing systemic risk, investment in the business sector and the changing average creditworthiness of borrowers and potential customers. I described these issues in my publications.
Please reply. I invite you to the discussion
Dear Friends and Colleagues of RG
The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:
I invite you to discussion and cooperation.
Best wishes
Relevant answer
Answer
Dear Colleagues and Friends from RG,
The above discussion inspired me to formulate the following question:
Can there be a strong correlation between the quality of the credit risk management process and the sources of global financial crises?
On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that there may be a strong correlation between the quality of the credit risk management process and the sources of global financial crises.
Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my earlier considerations on this topic: the issue of correlation determinants occurring between the quality of conducting the credit risk management process and sources of global financial crises.
In my opinion, financial markets significantly model and discount the credit risk associated with transactions carried out in these markets. I have been researching this issue for many years and I have noticed that for some time the scale of correlation between what is happening in the real economy and the valuation of specific assets on financial markets, including capital, currency, securities and derivatives is still high. On the other hand, however, institutional, organizational, structural, functional, etc. changes that have been taking place in domestic and international financial markets since the 1970s increase the scope of investment, credit and other categories of financial and market risks during financial investment transactions and / or investing in specific assets listed on stock exchanges and other capital market segments. Banks and investment funds operating on these markets and dominating on these markets have developed advanced models for valuation of specific categories of financial, banking, market, operational risk, etc. with many years of experience. Thanks to the developed analytics based on economic knowledge, instruments of science, quantitative estimation of various categories of economic aspects of the functioning of enterprises and financial institutions, complex risk valuation models based on large quantitative data resources, the use of business analytics verifying various categories of information on Business Intelligence research platforms, Data Science, Data Analytics, Big Data as well as statistical and probabilistic research instruments, the use of selected financial and stock market indicators globally operating banks and investment funds have the possibility of precise valuation of almost any risk category. However, the problem is the issue of business ethics, and basically its excessive reduction from time to time.
Well, in a situation of prosperity lasting at least several years, both in the real economy and in capital markets, most economic entities located on both sides of the markets begin to accept too high levels of credit risk and other categories of risk. It should be added here that in this group of most entities only a few carry out risk assessment analysis processes, have risk valuation tools, run risk management processes and can accept transactions fully secured against negative scenarios on financial markets. Most entities, financial market participants do not do this, do not carry out these analyzes. These are primarily clients of financial services and products, using the services of banks and investment funds, individual clients and numerous non-financial enterprises. These entities rely on the opinion and analyzes carried out, on the recommendations and recommendations formulated for them by banks and investment funds. On the other hand, if the rating agencies belonging to banks before the global financial crisis of 2008 were able to give the media unreliable recommendations that were misleading thousands of millions of financial services clients to the media, then in such a situation the systemic credit risk could grow rapidly and also exceed optimal levels , acceptable, secured credit risk in transactions also carried out on capital markets using the financial capital of clients. Examples of breaking the rules of business ethics, failing to respect the principles of corporate social responsibility, unreliable, incomplete, improper information to clients, etc. were diagnosed in the operations of many banks before the global financial crisis appeared in autumn 2008. In addition, unreliable compliance with risk analysis process procedures has been diagnosed at almost all levels and stages of transaction processes or analytical related key issues necessary for the assessment and valuation of specific categories of financial, banking, market, operational risk, etc. From the first contact of a banking adviser helping a potential borrower complete the application for a mortgage, by maintaining a specific level of cash reserves and highly liquid investment instruments required by the regulations of the banking supervision institution, ongoing risk monitoring of the entire loan portfolio and other financial instruments, including derivatives, up to the systemic deregulation carried out in the 1990s and the central bank policy, which for many years until 2007 kept record low interest rates - diagnosed many mistakes that led to the creation of too high, not fully secured system credit risk and generating a global financial crisis in 2008.
In my opinion, financial market security systems and credit risk management processes should be realistically improved in their functioning after 2008 so that a similar global financial crisis does not occur in the future. This should be realized, the international financial system should be reformed in many aspects of its functioning to reduce the likelihood of future emergence and scale of negative effects - the next global financial crisis. Among other things, they should be strengthened by the supervisory institute over international financial systems operating nationally. Credit risk management procedures in financial systems should be improved, especially in investment banks, in the banking segment, which is most responsible for generating the global financial crisis of 2008. Unfortunately, however, this has still not been done on many issues.
In addition, the issue of reliability, objectivity, corporate social responsibility and ethics of conducting the credit risk management process is also important. The credit risk management process, including creditworthiness assessment, is moral if it is conducted fairly, ethically and fully in accordance with the procedures of an effectively conducted credit risk management process. If the assessment of creditworthiness is carried out unreliably, i.e. treated as an instrument of extremely liberalized credit policy, it may be a factor leading to a significant deterioration in the quality of the loan portfolio in banks. If this is a deliberately planned action as part of an extremely liberalized credit policy that is primarily subordinated to an increase in credit sales with a deliberate disregard for risk management procedures. In such a situation, such unreliable assessments of creditworthiness can even be described as unethical activity, which can be a significant factor leading to a significant deterioration of the financial situation of a bank. These types of situations of extremely unreliable assessment of creditworthiness on a massive scale occurred in many credit and deposit and investment banks before the global financial crisis of 2008.
As part of my doctoral dissertation, I studied the process of improving credit risk management at commercial banks operating in my country. In my country, investment banking is a small part of the banking system, so I studied the problem of improving credit risk management on the example of commercial banks representing classic deposit and credit banking. The research that I conducted in the field of improving credit risk management for the needs of my doctoral dissertation concerned the 1990s and the beginning of the 21st century. For the purposes of my dissertation, I studied the correlations between such factors as:
- procedures, instruments, determinants of the analysis of creditworthiness of enterprises applying for economic and investment loans,
- procedures, instruments, determinants of the analysis of the creditworthiness of individual customers applying for a consumer loan,
- information asymmetry between the bank and the borrower,
- the role of a credit inspector in the context of the analysis of the creditworthiness of potential borrowers applying for a specific type of bank loan,
- the issue of reliability of creditworthiness analyzes carried out by the credit inspector of potential borrowers applying for a specific type of bank loan,
- objectification, automation, computerization of creditworthiness analysis processes of potential borrowers applying for a specific type of bank loan,
- determinants of changes in the bank's credit policy adapting to changes in the economic and financial situation of the bank's customers,
- the quality of the bank's loan portfolio,
- procedures, instruments, determinants of improving the commercial bank's credit portfolio risk management process,
- the economic and financial situation of a commercial bank, the major part of revenues from the sale of banking products and generated profits comes from conducted lending activities,
- analysis of business cycles, with particular emphasis on the change in the level of economic activity in the enterprise sector, i.e. the main clients of commercial banks, which obtain a significant part of their revenues from the sale of business loans,
- the development of share prices listed on the Stock Exchange of the examined banks, i.e. changes in the level of market valuation of the examined banks.
Summary of the research and the results obtained from the research and interesting conclusions I posted on the Research Gate portal. After defending my dissertation, I continued my research on the issue of improving credit risk management at commercial banks in the analysis of correlation with various factors surrounding the banks, affecting the economic and financial standing of bank customers. The conclusions that I wrote in my doctoral dissertation pointed out the key issues that commercial banks should improve in their lending activities to reduce the likelihood and scale of portfolio and systemic credit risk increase and to avoid losing liquidity and serious financial problems. I defended my PhD thesis for a few years against the appearance of the global financial crisis in 2008. The conclusions contained in my doctoral dissertation contained important suggestions regarding key aspects, instruments, determinants, directions of the process of improving credit risk management in commercial banks. These conclusions are still valid. In addition, I continued research for the purposes of my dissertation in the following years. After the emergence of the global financial crisis in 2008, I also examined lending and investment activities at financial institutions, including investment banking, which played a key role in increasing credit risk significantly above optimal levels, secured in reserves. In addition, in my publications posted on the Research Gate portal I also pointed to other sources of the global financial crisis of 2008 and pointed out the key issues in the process of improving credit risk management and investment activities carried out in banks. I pointed out, among others, the role of monetary policy, systemic liberalization and deregulation regarding the activities of commercial banks, including investment banks, which have taken place since the 1990s, as well as other important factors and sources of the global financial crisis of 2008. The conclusions of the research I published in scientific publications that are available on the Research Gate portal. I invite you to cooperation.
A significant increase in the level of debt is often a source of the financial and economic crisis. Many examples are known to support this thesis. In the past, a significant increase in the level of debt has caused serious financial and economic problems in many economic entities, including financial institutions as well as other types of public entities, organizations and institutions. Serious financial problems also led to a permanent loss of financial liquidity and the announcement of the insolvency of a particular business entity, company, corporation, bank, etc. This problem applies not only to entities surveyed in microeconomic terms, i.e. individual economic entities. This problem has also often involved the macroeconomic approach, when the high debt of public finances led to the declaration of the state's financial insolvency, i.e., e.g. declaration of the state's insolvency towards the creditors of foreign financial institutions that have previously granted loans or purchased treasury bonds. I study the issues in the context of analyzing the sources of the global financial crisis that appeared in the autumn of 2008. When this crisis developed, many companies, corporations and banks had serious financial problems, which were caused by a strong increase in debt. Then, if the state had not launched various rescue programs for banks and corporations, many of these entities would have collapsed and the global financial crisis of 2008 would have been even more serious than it had been. On the other hand, the effect of launching these rescue programs was a significant increase in public finance indebtedness in many countries. This increased state of public finance indebtedness in many countries persists to date. In some countries, this level of public finances debt is so high that without high economic growth it is practically impossible to quickly reduce this debt. Therefore, such countries are still exposed to the emergence of further economic crises if the current rate of economic growth drops significantly. In order to improve this situation, governments of individual countries are trying to activate entrepreneurship and innovation in their countries. However, this activation also requires spending further amounts of money from the state budget for development purposes. However, it is necessary for the economic growth to improve, for the income, consumption, investments to increase, for the unemployment to fall, etc. Thanks to this type of effective entrepreneurship activation and creation of facilitations for the development of business entities, it is possible to gradually reduce the level of debt both in microeconomic terms individual business entities as well as in macroeconomic terms, i.e. in the situation of analyzing the systemic debt risk in the entire economy and in relation to the state of public finance indebtedness. I am researching this issue in correlation with the issue of improving credit risk management in financial institutions. Mistakes made in many business entities and institutions, including public institutions, also in central banking led to a significant increase in crediting of consumption, purchase of flats and houses, crediting economic enterprises and new investment projects before 2008 and led to the largest global financial crisis in the history of development economic world. It is therefore necessary to constantly improve the credit risk management process as well as other categories of financial, banking, market, operational, IT systems, etc.
In connection with the development of economic globalization in international financial systems, the increase in the scale of mergers and acquisitions in the field of capital transactions in the financial sector, which leads to the emergence of larger and larger banks operating globally, in addition to deregulation in financial markets, the growing importance of monetary policy in the context of interventionist economic policy, the development of international liquid exchange rate systems on currency markets, the development of derivatives used not only to hedge other financial transactions but also to speculative activities on capital markets, etc. since the 1970s, systemic credit risk has been increasing and the frequency and scale of domestic and supranational occurrences financial and economic crises. In connection with the increase in systemic credit risk, the importance of effective operation of financial supervision institutions and improvement of the credit risk management process is increasing.
In the 1990s, serious mistakes were made in allowing investment banking to be combined with the classic deposit and credit banking system in the Anglo-Saxon financial system, thus lifting restrictions and instruments ensuring a high level of system security in commercially operating financial systems. These types of erroneous changes in prudential regulations that reduce the scope of effective operation of financial supervision institutions and credit risk management systems increase the likelihood and scale of negative effects of subsequent financial and economic crises. To this should be added the serious mistakes that were made in shaping monetary policy and allowing for a rapid increase in public debt in public finances even before the global financial crisis emerged in autumn 2008. In the context of these facts and the increase in systemic credit risk, there are considerations whose main purpose is to verify the research thesis on the question of the possible excessive growth of the commercially operating financial system in modern economies and on an international scale, far above the needs and macroeconomic conditions of currently functioning national economies. Therefore, in order to verify this type of theses, one should consider the answer to the following question: Is the over-expanded commercially operating financial system operating more and more speculative on financial markets, including not only credit but also securities, derivatives and currency markets, speculative investments in raw materials, etc. in modern national economies and on a global scale may displace classically implemented investments involving the implementation of investment projects leading to the creation of real, direct, sustainable, investment financial economic goods by enterprises (financed from non-bank financial sources) and by the state (investments financed from public funds, with particular emphasis on national economies with their own national currency)?
The process of improving credit risk management is implemented mainly at the level of a specific commercial bank. Central and supervisory institutions, which mainly include central banking and banking supervision institutions, may affect some aspects of this process, correct possible excessive levels of systemic credit risk, especially in a situation where a specific bank unreliably implements prudential procedures in the field of lending activity or in a deteriorating situation loan portfolio quality caused by the recession in the domestic and possibly global economy. Before the emergence of the global financial crisis in autumn 2008, there was an unwritten rule in some financial environments that a large banking entity could not fail. The declaration of bankruptcy by one of the largest investment banks, Lehman Brothers, whose bankruptcy began with the global financial crisis, questioned this type of opinion regarding financial system entities.
To analyze the correlation of the effectiveness of the process of improving the credit risk management process in commercial banks and the shaping of monetary policy by the central bank, the key issue is the relationship between central banking and commercial banking that has been built over the years. For example, the issue of implementing central bank assistance functions for commercial banks in the event of a significant increase in liquidity and debt risk, problems with the effective management of assets and liabilities and / or in the case of high risk of bankruptcy. In such a situation, a commercial bank may ask the central bank for help in the form of low-interest loans, interest-bearing loans on preferential terms, while increasing the scope of financial management control. In addition, the possibility of buying commercial junk securities and other assets and outstanding loans from banks. This type of central banking assistance activity towards commercial banks, including investment banks, has been used on a large scale since September 2008, i.e. since the beginning of the development of the largest global economic crisis in the history of global financial crisis. However, it is possible to diagnose situations in which as part of this assistance activity of the central bank towards commercial banks, including investment banks, the moral risk and disregard of the principles, methods and procedures of the banking risk management process, including credit risk management, liquidity risk, may be neglected. debt risk and other risk categories.
For example, if central banking suggests to commercial banks, including investment banks operating on capital markets, that in the event of a financial crisis it will help to eliminate the potential risk of bankruptcy of many entities of the financial system, then how these declarations translate into an approach to improving the credit risk management process and to comply with banking procedures regarding lending and securities operations and to comply with good business practices? In my opinion, such unwritten declarations can increase moral risk and reduce pressure and the need to improve credit risk management processes. Does any of you examine this issue in the context of analyzing sources, factors of financial and economic crises? I am researching this issue and invite you to cooperation. I described the results of my research in scientific publications that are available on the Research Gate portal. I invite you to cooperation.
In line with the above, in my opinion there may be a strong correlation between the quality of the credit risk management process and the sources of global financial crises.
Do you agree with me on the above matter?
I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.
In view of the above, I am asking you the following questions:
- Can there be a strong correlation between the quality of the credit risk management process and the sources of global financial crises?
- The issue of reliability in the implementation of credit procedures, liberalization of the credit policy, effectiveness of the credit risk management process and the quality of the loan portfolio?
- Has greater expenditure in commercial banks been allocated to improving the risk management of data transfer security in online banking in recent years than to improving credit risk management?
- Has prudential instruments been improved after 2008, the functioning of supranational and national supervisory institutions on financial systems and credit risk management procedures in financial systems improved?
- Is a significant increase in debt often a source of financial and economic crisis?
- What is the impact of monetary policy of central banking on the lending policy of commercial banks?
What do you think about this topic?
What is your opinion on this topic?
Please reply
I invite you to discussion
thank you very much