Financial crisis in Zimbabwe have been a common phenomenon in the financial services sector,year after year banks have collapsed despite the fact that they have risk management departments which regularly meet to review their exposure to risk and look at different measures on how to mitigate these risks.Financial institutions practice and value risk management in Zimbabwe because they understand that risk management is core to banking survival, but it was found that risk management techniques and practices are not being practiced effectively due to a variety of reasons and problems.This book provides a variety of risks financial services sector face and their implications to the economy.Financial services sector is core to the economy whenever stakeholders loose confidence in the financial services sector the economy will be affected greatly leading to economic woes as witnessed in Zimbabwe.
Modern Banking focuses on the theory and practice of banking, and its prospects in the new millennium. The book is written for courses in banking and finance at Masters/MBA level, or undergraduate degrees specialising in this area. Bank practitioners wishing to deepen and broaden their understanding of banking issues may also be attracted to this book. While they often have exceptional and detailed knowledge of the areas they have worked in, busy bankers may be all too unaware of the key broader issues. Consider the fundamental questions: What is unique about a bank? and What differentiates it from other financial institutions? Answering these questions begins to show how banks should evolve and adapt - or fail. If bankers know the underlying reasons for why profitable banks exist, it will help them to devise strategies for sustained growth. Modern Banking concludes with a set of case studies that give practical insight into the key issues covered in the book: The core banking functions Different types of banks and diversification of bank activities Risk management: issues and techniques Global regulation: Basel 1 and Basel 2. Bank regulation in the UK, US, EU, and Japan Banking in emerging markets Bank failure and financial crises Competitive issues, from cost efficiency to mergers and acquisitions Case Studies including: Goldman Sachs, Bankers Trust/Deutsche Bank, Sumitomo Mitsui, Bancomer
Book DescriptionSaunders and Cornett’s Financial Institutions Management: A Risk Management Approach 5/e focuses on managing return and risk in modern financial institutions. The central theme is that the risks faced by financial institutions managers and the methods and markets through which these risks are managed are becoming increasingly similar whether an institution is chartered as a commercial bank, a savings bank, an investment bank, or an insurance company. Although the traditional nature of each sector’s product activity is analyzed, a greater emphasis is placed on new areas of activities such as asset securitization, off-balance-sheet banking, and international banking.
Islamic financing system is based on the framework given by the Shariah. Shariah is basically the rules and principals, which are originated from the Quran and Sunnah. Islamic scholars also elaborated the Islamic rules in Islamic jurisprudence according to the framework of Quran and Sunnah. Furthermore, Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. Like conventional banks, Islamic banks are exposed to the some kinds of risks.However, in the case of Islamic banks, added attention must be paid to the contractual role of the bank, when analyzing the risks inherent in the bank’s assets and liabilities. Because, Islamic banks are also, exposed to Shariah law risk which is related to the structure and functioning of Shariah boards at the institutional and systemic level. Moreover, the industries of Islamic Finance and Banking are still young so there are many problems that are facing his implementation and growth. Hence,the structure of the Islamic banks can be improved by taking some steps that are presented in this book.
The Handbook appears in two parts.They are meant for students of International marketing,banking and finance.Its WORTHY for diploma, undergraduate, postgraduate, professional and technical bodies students, Export-Import trade practitioners and bankers. These handbooks cover theories,laws to practical essentials of Global trade finance.This is volume II after the release of volume I recently.This volume concentrates on procedures, regulatory frameworks and policy issues to support financial mechanics and operations for Global trade and exports finance management.
Asset-Liability Management (ALM) is an important planning of the banks for facilitating the liquidity management. ALM is an important tools for identification the mismatches between the total assets and total liabilities of a bank. It plays an important role in maintaining an adequate level of liquidity in terms of banks The study highlights the insight of the subject to the students, researchers, and the practitioners.
The book explains how interest rate risk exposure affects the financial performance of commercial banks in Uganda. The banking sector in Uganda is extremely exposed to various risk exposures in terms of volatility from exchange rates, currency fluctuations, oil prices shocks and inflation which later affects the lending activities of the banks. The purpose of the study was to highlight the key measures, strategies and best practices of minimizing risk exposures in the banking sector by practicing best risk management approaches in line with the international best practices of managing interest rate risks. The study has created avenues for discussion to the extent that the commercial banks in Uganda has achieved good sound and strong measures of the Camel rating risks measures of financial performance and risk reduction strategies in order to curb future risk exposures in the sector. We explore to encourage readers to compare our approach to bring in more insights to the banking sector best practices of interest rate risk management and best ways to sustain bank performance in the fragile environments especially financial crisis in the global financial markets and fragile economies
Target oriented approach in Indian banks has eroded the quality of lending, leading to high level of NPAs that has resulted in negative impact on their profitability due to the necessity of provisions, recoveries and write offs as per RBI guidelines. NPAs also negatively impact the capital adequacy ratio, net worth and credibility of banks. Rising NPAs have direct impact on the bottom line as legally banks cannot book income on such accounts. Indian banks need to be more proactive in all their operations, particularly risk identification and management, to operate profitably in the prevailing milieu. The book discusses credit risk, which is one of the major risks faced by Indian banks because lending policy is a significant driver of NPAs. Analysis reveals that there is a rising cause for concern about NPAs. The parameters indicate a need for initiating strategic imperatives at both micro and macro levels, failing which the situation can spiral out of control. The book is written with the express purpose of analyzing trends in NPAs in Indian banks and putting forth useful suggestions for managing credit risk. It should be of use to banking professionals and finance students.
The Zimbabwean economy has been falling from grace since the late twentieth century as echoed by the documented record inflation levels. The facets of the economy struggled to survive with failures, closures and takeovers taking center stage. Barring regulatory changes by the Central Bank, somehow the banking sector seemed immune to these macro-economic changes. Nonetheless, two banking crises occurred within a space of five years before the eventual dollarization of the economy the the monetary and fiscal authorities in 2009. The fate of banking in Zimbabwe was not made easier by an equally devastating Global Financial Crisis such that survival strategies became of paramount importance rather that traditional banking as before. As the post dollarization era wears on, banking in Zimbabwe must be put under the microscope to determine its contribution to economic growth and development in a liquidity starved economy.
The existence of sound market risk management practices is crucial to promote investors confidence required for capital market development. This study would therefore help in guiding management, especially in the financial sector, in determining the best risk management strategy to be adopted by their organizations. The study will also bring to the fore, certain risk management practices that when paired with existing global events, can be detrimental to the performance of the financial sector.Both private and corporate investors will benefit from understanding the current practices of risk management in Nigeria and how these fit with recommendations in literature.
The nexus between financial sector, banking system, and economic growth has been one of the most heavily researched areas for many years. In particular, financial and banking sectors’ development has been found to play an important role in economic growth, but in the meantime domestic banking inefficiency has been reported to slow down that growth. Equally important is the role of foreign banks in mitigating banking and financial inefficiencies The aim of this work is to combine and investigate the interests of both foreign banks and policy makers. For the former it provides a better understanding of what factors have more effect on profitability; and for the latter the findings could help to enhance the functioning of their countries’ financial systems and thereby the economic growth. The first part examines the profitability of foreign banks in nine MENA economies. The second part investigates the nexus between financial development and economic growth in MENA region. This work was supervised by Umberto Filotto, Professor of Banking Management and Corporate Finance, faculty of economics, university of Rome Tor Vergata.
Islamic finance has been developing rapidly in the last forty years with Islamic financial institutions expanding at enormous rates all over the world. Islamic finance offers both an equity based system dependent on profit-and-loss sharing modes along with other debt-based instruments that facilitate trade. This study focuses on eight banks in Malaysia that are incorporated under the Islamic Banking Scheme and offer both conventional and Islamic banking operations. The comparison between both types of operations is conducted in terms of profitability, liquidity, and asset quality using several financial ratios. Results suggest that four out of the seven ratios were statistically significant when comparing population variances, and also suggest that all seven ratios were statistically significant at the 99% confidence level when comparing population means. This means that the null hypothesis was rejected in those cases implying that the two populations are not equal. Further, the results are consistent with the arguments offered in favor of the benefits of the Islamic banking system as opposed to the negative social and economic outcomes of the conventional system.
The rate of failure of IT projects has remained little changed in survey after survey over the past 15-20 yearsover 40-50%. This has happened in spite of new technology, innovative methods and tools, and different management methods. Why does this happen? Why cant the situation be better? One reason is that many think of each IT effort as unique. In reality many IT projects are very similar at a high, strategic level. Where they differ is in the people and exact eventsthe detail. If you read the literature or have been in information systems or IT for some time, you have seen the same reasons for failure and the same problems and issues recur again and again. In this book IT Management experts Ben Lientz and Lee Larssen show you how to identify and track the recurring issues leading to failure in IT projects and provide a proven, modern method for addressing them. By following the recommendations in this books readers can significantly reduce the risk of IT failures and increase the rate of success. Benefits of using this approach: Issues are identified earliergiving more time for solution and action. Issues are resolved more consistently since the approach tracks on their repetition. You get an early warning of problems in IT workbefore the budget or schedule fall apart. Management tends to have more realistic expectations with an awareness of issues. Users and managers have greater confidence in IT due to the improved handling of issues. Since the number of issues tends to stabilize in an organization, the IT organization and management get better at detecting, preventing, and dealing with issues over timecumulative improvement. Giving attention to issues make users more realistic in their requests and acts to deter requirement changes and scope creep.* Full of checklists and methods that can be used in day to day Project Management work in real companies* Easy to read style and book organization allows the reader to jump into the book right at the point they need* Shows how to set up an issues database for better identification and tracking of issues, providing an Early Warning System to help move the project to success